First Meeting Held on Reforming the Litter Tax
House Joint Resolution 448, directing the Department of Taxation and the DEQ to study tax policy options for reforming the litter tax, was passed earlier this year. As you may know, the proceeds of this set of taxes are in effect the only steady source of funding from Richmond to the localities to support litter prevention or abatement and recycling efforts. The funds are distributed based primarily on road miles and population, with some competitive funding for special projects. The challenges are different across the counties receiving only a few thousand dollars per year and the counties that receive larger disbursements, but they have in common a struggle to adequately fund these programs we know can have important and immediate impacts.
The mission of the study is, “to review how the litter tax could better promote recycling, reduce landfill waste, and advance environmental stewardship in the Commonwealth.” Two members of your SWANA-Old Dominion Board of Directors—Kim Hynes and Kate Vasquez—were nominated and selected to participate in a “Virginia Litter Tax Study Group.” On September 16, Kim and Kate attended the first meeting, which was a full day and well-attended, with discussion that was collaborative and collegial. All in attendance spoke to the need for improvement in the collection and use of funds for the care of our air, soil, water, and people.
There was general consensus that the agencies involved in the study should examine and consider:
- Confirming types of retailers of products subject to the tax who are required to file, but are not paying the tax currently;
- Contemporizing the decades-old list of products that are subject to the tax (for example, items such as energy drinks, alcoholic seltzers, and bottled water did not exist in the marketplace when the list was itemized); and,
- Right-sizing the amount of the tax to reflect inflation over time.
Minutes of the meeting will be published by DEQ, the draft report is due in November, and the first report is due to the Legislature when they convene in January. The study will take place over two years, with another round of meetings and reports in 2026/7. When these publications are made, we’ll make sure to note it here.
To read about the litter tax as it stands now, see https://www.deq.virginia.gov/land-waste/waste-management/litter-prevention/litter-tax and https://www.tax.virginia.gov/litter-tax.
To read HJR448, see https://lis.virginia.gov/bill-details/20251/HJ448.
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