The Future of Taxes

When is a sales tax more than just a sales tax? When you're buying certain items in California (but likely soon coming to a state near you). In the ever-creative business of coming up with new taxes, the government is getting more clever. I'm certain that this idea will spread to more and more products in the future as well. My friend emailed me this story about his new tv purchase:

I bought a 20” TV at Best Buy this week. The price was $179.99, but I ended up paying $202.84. It turns out that paying 8.25% sales tax is not enough in California. I was also charged a recycling fee of $8.00 [an additional 4.4% tax]. The reason for the fee is described on the California State Board of Equalization website as follows:

"Some electronic devices contain hazardous materials. The fee was established to fund electronic waste recycling programs and over time, reduce the amount of hazardous waste in landfills."

OK, sounds like they have some specific, concrete ideas on how to put these dollars to use (not!). The site goes on to describe the types of devices that are subject to the tax:

"Beginning January 1, 2005, you must collect the fee on the retail sale or lease of a new or refurbished video display device that has a screen size of more than 4 inches measured diagonally. These are called 'covered electronic devices' (CEDs). They include: Televisions that contain cathode ray tubes. Computer monitors that contain cathode ray tubes or use liquid crystal displays. Laptop computers. 'Bare' cathode ray tubes or any other product that contains a cathode ray tube. Refurbished items are products the manufacturer has tested and returned to a condition that meets factory specifications, repackaged, and labeled as refurbished."

Already skeptical, I decided to read on. The following excerpt is from the “CED Recycling” FAQs:

"1. When consumers wish to get rid of CEDs, will they need to show proof they paid the E-Waste fee to dispose of their items for free?
No. The disposal of a CED is a separate transaction from the purchase of a CED. The disposal facility may or may not charge the consumer a fee to dispose a CED, but either way, it will not be dependent upon a consumer having first paid an Electronic Waste Recycling Fee at the time they purchased the CED.

2. The language of the E-Waste law states that consumers must be provided with "cost free opportunities" to dispose their computer monitors and TVs. Does this mean that some collections will be free, while other disposals will be subject to a fee, as long as there are opportunities for free collection?
The Board of Equalization does not administer this portion of the law. Please contact the California Integrated Waste Management Board with your inquiry. They will be responsible for administering the recycling programs. Contact information for the California Integrated Waste Management Board is listed below. "

So what am I paying for again? I may or may not be charged a disposal fee? The Board of Equalization does not administer this portion of the law? This is ridiculous! It seems like the only commitment being made as part of this law is that I will be charged an additional $6.00 to $10.00 when I buy a “CED.” If I wanted to spend $8.00 on pork, I would go to the supermarket, not Best Buy!