the michigan deposit law is the stupidest and most idiotic law ever. for those unaware, michigan charges a 10 cent deposit for “beverage containers” (glass, paper, airtight metallic containers, or plastic with a volume of less than 1 gallon) that contain a “beverage” (which is defined as any non-alcoholic carbonated drink, or beer, ale, carbonated malt beverages or mixed wine or spirit drinks.) 11 other states have enacted similar laws.
the reason the law was enacted was two reasons:
- michigan’s recycling rates dropped below many states in the country
- michigan’s litter rate was increasing rapidly
based on MDOT evidence, the michigan litter rate along major roadways did infact drop, from 200+ containers per mile to 45 containers per mile. but the recycling bit…here are some fun facts.
- the michigan law does not require bottlers to recycle the beverage containers that they collect. only that they must collect them from retailers that collect bottles from consumers.
- michigan does not collect statistics on beverage container return rates. it only measures the amount of money collected and paid out by the treasury. sadly, this also means fraud calculations are not included in any of the published numbers paid out by the state for bottle deposits. however, research by the state of michigan estimates fraud on returning out of state beverage containers reaches 50-150 million containers a year. that’s $5-15 million in cash paid out by the state.
michigan’s own research shows that each container under the bottle bill law has a financial impact of $0.025 per container. no bottle bill has a financial impact of $0.001. that’s a savings, based on michigan data of close to $90 million a year split between retailers, bottlers, distributers and the state. the bottle law itself, well, that generates, on average of the 16 years of data i see, the state collects an average of just $12 million for use by the treasury!
another unintended consequence of the bottle deposit law is that curbside recycling has dwindled in michigan communities…which does not help with recycling other plastics and papers not covered by the law. personally, i also feel that homelessness rates are higher in areas that have bottle deposit laws. sadly, no educational papers have been written on the subject, but there have been papers written about low-income families supplementing their income using bottle deposit laws by collecting beverage containers.
here’s my fix:
- get rid of the deposit law. it’s stupid! the recycling statistics were taken in the late 70’s, when the environment was of no concern to americans. now, it’s cool to be environmentally friendly, and our recycling statistics could rival those of states without deposit laws.
- use the $100 million saved each year ($90 million cost of the bottle program per year, plus $10 million paid out to fraudlent redeemers) and provide tax incentives to retailers and bottlers to implement an improved recycling programs and infrastructure in michigan communities.
- ensure that curbside collections are indeed being recycled (something that is NOT currently required by the michigan bottle deposit law)
- impose heavy fines on those that litter and offer rewards to anyone that reports littering or dumping.
quick fix, save the state money, improve the environment, save the average michigan household $25 a year, while saving the state, retailers, distributers and bottlers millions per year, which can go to create new jobs, something michigan so desperately needs.
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