SACRAMENTO (Sept. 2, 2004) — The state of California may raise its new-tire fee to $1.75 a tire if Gov. Arnold Schwarzenegger signs a bill waiting on his desk.
AB 923, passed by both houses of the California legislature, would raise the fee to $1.75 as of Jan. 1, 2005. Air pollution prevention programs would receive 75 cents of the fee while the California Integrated Waste Management Board (CIWMB) would continue to fund state tire programs with $1 from the fee, according to Terry Leveille, a lobbyist for California's state tire dealer associations.
As of Jan. 1, 2007, the fee would be lowered to $1.50, reducing the share given to air pollution prevention programs to 50 cents. The fee will remain at $1.50 until Jan. 1, 2015, when it will again be lowered to 75 cents per tire, Mr. Leveille said. Tire dealers currently retain 3 percent for tire collection costs, but that amount would be reduced to 1.5 percent if the bill becomes law.
The executive directors of both the California Tire Dealers Association—North and the California Tire Dealers Association—South are urging their members to send letters to the governor's office protesting the bill.