Dive Brief:

• A bill under consideration in the California legislature would slash millions in sales tax for recycling companies and reclaimers.
• Assembly Bill 199 would expand the definition of projects able to qualify for tax exemptions, including businesses that "primarily process recycled feedstock that is intended to be reused in the production of another product or utilizes recycled feedstock in the production of another product or soil amendment."
• Thirty-six local and national organizations are in support of the bill. There is no registered opposition. 

Dive Insight:

According to Teresa Bui, a legislative and policy analyst at the nonprofit Californians Against Waste, the bill supports in-state jobs, reduces exports of materials overseas and helps in the creation of a stronger recycling system.

The bill passed unanimously in the State Assembly’s Committee on Natural Resources and will next move to the Revenue and Taxation Committee. 

The state Board of Equalization notes that state and local taxes in California range from 7.5% to 10%.