Recycling Tipping Fee Increase and Transfer from the Recycling Fund to the General Fund (DNR – Air, Waste, and Contaminated Land)

The Legislature enacted 1989 Act 335 as a statewide regulatory and financial assistance program aimed at encouraging, and in some instances requiring, solid waste recycling and reduction. Most of the state's solid waste management, recycling regulation, financial assistance and technical assistance programs are administered by the Department of Natural Resources (DNR).

State recycling programs are funded from the segregated recycling fund. Revenues to the recycling fund are provided from the recycling surcharge and recycling tipping fee. The recycling surcharge is 3% of gross tax liability for corporations (including insurance companies and limited liability companies taxed as corporations) or 0.2% of net business income for sole proprietorships, partnerships, limited liability companies taxable as partnerships, and S corporations. There is a minimum payment of $25 and a maximum payment of $9,800. Farms and other businesses with less than $4 million in gross receipts are excluded from paying the recycling surcharge. Noncorporate farms (sole proprietorships, partnerships, LLCs taxable as partnerships) that are subject to the recycling surcharge pay the $25 minimum amount. Farms organized as regular C corporations and S corporations that are subject to the surcharge, determine surcharge payments the same as other C and S corporations. The Department of Revenue administers and collects the recycling surcharge.