Thursday, August 27, 2009

Tire Tax - so much for advance notice ?


A new Tax -- on tires --OK .... but wait ....gee ...where was the advance notice .... it starts Sept 1 2009 .... holly cow ....

Here is link for home page

here is what we got from AIA on Aug 25 ... ( not much lead time )
DATE: August 25, 2009

SUBJECT: Used Tires Program launch effective September 1, 2009

OTS or Ontario tire Stewardship is the agency set up by Waste Diversion Ontario, and supported by the provincial Government to determine the best way to cure the scrap tire problem in Ontario. The goal is to divert tires from burning for fuel and land filling to 3Rs (Reduce, Reuse, Recycle) processing and uses. Registration has begun for the Program, which officially launches September 1, 2009. Within five years, the Program will divert 90% of scrap on-road tires and collect and recycle 50% of all scrap off-road tires.
The program that has been recommended and accepted will add a fee to the sale of a tire in the province of Ontario.

What is the OTS Fee?
Passenger ort Light truck = $5.84
Medium truck = $14.65
Industrial = $12.52
Agriculture = $15.30
Off the Road (OTR) = $22.26 - $250.41

How does the reporting work?
There are 5 roles of reporting in the program.

Steward: Manufactures or imports tires into Ontario.
Collector: Removes used tires from vehicles and/or accepts used tires
Hauler: Transports used tires to a scrap tire processor.
Processor: Processes scrap tires into other streams or raw materials.
Recycled Product Manufacturer: Uses processed scrap tire raw materials for new products or uses.

Some businesses will incorporate more than one role, e.g. a tire retailer could import tires and be a Steward and a Collector or a processor with trucks on the road could be a hauler and a processor.

How is the fee charged or collected?
The fee is levied to the manufacturer (if made in Ontario) or to the 1st level importer, if not made in Ontario.
These parties are referred to as the Tire Stewards. Tire Stewards must report sales monthly to the OTS and remit fees monthly. These fees are being passed on the sale of the tire to the Tire Dealer.

The retailer is being charged the OTS fee, and depending on how they want to sell their product in the marketplace, may either have the OTS fee included in the cost and sell price of the tire, or show it separately.

What does the Retailer (collector) get for this?
The retailer is provided a handling fee for the handling and storage until a hauler removes the scrap. Provided the collector is registered with the OTS, the Collector will receive $0.88 for each tire handled, and free hauling of the scrap tires from their location.

What handling fees are earned?
Handling Fees earned by the collector are as follows:
Passenger ort Light truck = $0.88
Medium truck = $3.05
Industrial, Agriculture, and OTR are dependent on weight and size.

Does the retailer still charge a tire disposal fee?
Any citizen is permitted to drop off 4 tires without any purchase to any collector free of charge. A single drop off that is more than 4 tires or from a business may incur charges. Charges would be determined by the collector. These charges must be reported separately to the OTS and are not subject to any handling allowances.

Haulers and Processors also earn fees back from OTS based on the scrap tires hauled or scrap tires processed.

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