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Sunday, February 3, 2013

Disposable Bag Fee Proposed by Governor


Governor Neil Abercrombie has proposed charging a bag fee of 10-cents for all single-use disposable checkout bags. Customers would be charged this fee, regardless of if they request paper or plastic checkout bags. Abercrombie believes that this fee would help raise $15 million for watershed protection initiatives as well as to encourage to state to recycle more. Customers could avoid this fee by bringing their own bags.
Maui and Kauai County have already have bans in place against using single-use non biodegradable plastic bags. Hawaii County (the Big Island) will follow suit later this year and Oahu will implement their ban on single-use non biodegradable plastic bags by 2015. However, many consumers have simply switched to paper bags and have asked to double or triple bag their purchases. By requiring a 10-cents fee for all bags would help curb the use of paper bags. Sierra Club Hawaii Chapter director, Robert Harris, commented, The experience on Maui, in particular, has been that it has been a pretty high transference to paper bags. There will be a significant economic impact that everyone will see in the cost of food and the cost of goods if we don’t try to figure out a way to get people off the paper bags as well.”
However, several groups oppose this fee. President of the Retail Merchants of Hawaii, Carol Pregill, stated, “Our greatest concern is the added cost burden (the proposal) will impose on our residents. This per-bag tax is regressive and will add to the cost of living for our families and consumers who can least afford additional costs at the grocery store.” The Tax Foundation of Hawaii added, “While proponents may argue that such a fee will discourage consumers from using single-use checkout bags, the real reason for this measure is to merely to raise more money to fund government programs.”
Source: Honolulu Star Advertiser, 2-3-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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