ANNAPOLIS -- A recycling tax of up to a dollar on every new tire sold in Maryland would be collected at the wholesale rather than retail level under amendments agreed to yesterday by a pair of Senate committees.
The move to tax at the wholesale level added to the House-passed bill was sought by the Maryland gas station dealers' association.
J. Basil Wisner, chief deputy comptroller, told the Budget and Taxation Committee that collecting the tax on the wholesale level would raise more money and be more efficient. But Michael Kress, a board member of the Maryland Tire Dealers Association, said his organization supports the bill, but strongly opposes applying the tax at the wholesale level.
Proceeds from the tax are to be used by the Maryland Environmental Service to develop a statewide scrap tire recycling program.
Amendments added by the Economic and Environmental Affairs Committee would give preference to existing scrap recycling facilities, would prohibit a recycling center to be located on any county unless it is part of the county's solid waste plan, and would not permit incineration of scrap tires unless there is no other "reasonable and economically available opportunity to process the tires and return them to the marketplace."
The Senate committees also agreed to postpone new licensing requirements for scrap tire haulers and collection and recycling facilities until July 1, 1992, although wholesalers would have to begin collecting the tax July 1, 1991.