Challenge

As part of a former Governor of Ohio’s Budget Proposal, the corporate franchise tax would be eliminated and other taxes would be implemented and raised to make up the lost revenue to the state.  The Ohio Department of Natural Resources (ODNR) utilizes part of the corporate franchise tax collected to fund the Division of Recycling and litter prevention. To pay for the Division’s programs, the Governor proposed a $2.75 per ton increase in the state surcharge on the solid waste disposal fee (commonly known as the tipping fee).

The House of Representatives amended the tipping fee provisions included in the bill. The House lowered the tipping fee increase by $1.00 to $1.75 per ton and increased the replacement tire fee from $1.00 to $2.00 per tire to fund recycling and litter prevention. This was an arbitrary increase, and unfair to the tire manufacturers and tire dealers in Ohio. A national trade association for the rubber products industry engaged LNE Group to fix this taxation problem.

Approach

LNE Group built a coalition from within the tire manufacturing and tire retail sectors and developed a strategy to address the new tire tax as the budget bill moved to the Senate for deliberation.  Within a week, LNE Group had drafted an amendment, found a sponsor and secured support from a majority of the Senators on the Senate Finance Committee.  By completing this grassroots activity first, issues and advocacy on behalf of our clients becomes a streamlined process with a successful outcome.

Result

The Senate removed the additional $1.00 tire tax and replaced it with a $.75 fee per ton on the disposal of construction and demolition debris. LNE Group’s assiduous advocacy to keep the tire tax out of the conference report proved to be successful, and the House and Senate agreed to a conference report that did not include an increase in the tire tax. The Governor signed the budget bill into law.