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SUBJECT: DISPOSABLE BAG TAX IMPLEMENTATION AND PROGRAMMING <br />DATE: MARCH 15, 2021 PAGE 2 OF 8 <br />However, community -wide diversion rates have not kept up with the City's contract <br />hauling. In 2019, community -wide diversion was at 25% with commercial diversion at <br />15% and all single-family residences at 29% diversion. The gap between commercial <br />and all single-family diversion and the residential contract diversion presents an <br />opportunity to invest, support and partner to increase overall community diversion. <br />CITY OF LOUISVILLE CITY OF LOUISVILLE SECTOR <br />COMMUNITY -WIDE zT DIVERSION (2019) <br />DIVERSION (2019)Ln <br />N <br />c-I <br />■ Landfill ■ Recycle ■ Organics <br />0 <br />oo <br />o <br />m <br />oo <br />,n m <br />N Ln <br />Ln <br />75 <br />1 <br />LANDFILL DIVERTED LANDFILL DIVERTED LANDFILL DIVERTED <br />COMMERCIAL SINGLE-FAMILY MULTI -FAMILY <br />Source:ReTRAC <br />TAX STRUCTURE: <br />Section 3.20.020(51) of the City's Sales/Use Tax Code defines a retailer as "any person <br />selling, leasing, renting, or granting a license to use tangible personal property or <br />services at retail. Retailer shall include but is not limited to, any: (1) auctioneer; (2) <br />salesperson, representative, peddler or canvasser, who makes sales as a direct or <br />indirect agent of, or obtains such property or services sold from a dealer, distributor, <br />supervisor or employer; (3) charitable organization or governmental entity which makes <br />sales of tangible personal property to the public, notwithstanding the fact that the <br />merchandise sold may have been acquired by gift or donation or that the proceeds are <br />to be used for charitable or governmental purposes; (4) retailer -contractor, when acting <br />in the capacity of a seller of building supplies, construction materials, and other tangible <br />personal property." <br />Retailers will retain $0.10 of each disposable bag tax collected as a vendor's fee to be <br />used for administration of the tax, such as training staff, improving or altering <br />infrastructure for administration of the tax, and improving infrastructure to increase bag <br />recycling. The remaining $0.15 of each disposable bag tax collected and remitted to the <br />City shall be used only for costs related to administration of the tax or other <br />sustainability-related initiatives and programs. <br />FINANCE COMMITTEE COMMUNICATION <br />