By Stan Matthews
County Website and Communications Manager
Beginning October 1, 2012 the Excise Tax Rate on garbage collection will go up from 10% to 16%. The new rate goes into effect on all the islands. Both the General Disposal District and the Lopez Disposal District are affected by the rate change.
There will still be no excise tax at all on recycling or hazardous waste collection.
For self-haulers, the tax will still be collected at the stations when garbage is brought in. For route collection, San Juan Sanitation Company will still add the tax to customers’ regular billing.
The excise tax on garbage was last increased in 1996, when it was established at 10%. Proceeds from the tax revenues can only be used for purposes related to solid waste, operations and maintenance, including debt service.
Ordinance 16-2012, relating to the General Disposal District, and Ordinance 17-2012, for the Lopez Disposal District were both adopted on September 11, 2012.
All adopted ordinances can be viewed on the County website at: https://www.sanjuanco.com/
Actually Stan, you are wrong about the last time the excise tax was raised. The tax is a percentage of the fee charged for services. So the excise tax is raised every time the cost of services is raised – ie. within the last year.
The rise in percentage rate should be viewed as a super-raise. The County will be collecting even more tax than the higher amount they were already receiving on the higher rates they are charging.
If the cost of services were $1 and you charge 10% the County would get $.10. If the County raises the fee to $2 the tax income becomes $.20. If the County then raises the tax to 16% on that $2 the tax income to the County becomes $.32. So the cost to the public goes up twice, with a total change from $.10 to $.32. (Though of course we are talking larger amounts in reality.)
I’m not necessarily saying the Council should not do this. I just want to have an honest account for readers.