LANSING, Mich. (Michigan News Source) – The Michigan Legislature must evaluate a proposed trash tax hike suggested by Gov. Gretchen Whitmer that could hammer businesses and increase costs for home owners.

Whitmer’s proposed $80.7 billion dollar budget includes a plan to raise raise per-ton landfill fees from 36 cents to $5. Her administration said the move would level-up Michigan with regional average and keep other states and Canada from dumping their trash here.

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While supporters of the bill call the rate increase a “tipping fee,” Mike Alaimo with the Michigan Chamber of Commerce says that is not accurate since tips are voluntary and a tax is not.

“Everyone has waste they need to dispose of,” Alaimo told The Steve Gruber Show on Friday. “The average family wouldn’t see a massive increase. [We’re only] talking about $30 to $40. For businesses, this could be an astronomical increase to their operating costs.”

Alaimo said the revenue from the proposed tax, which is calculated to be $80 million, would go towards contaminated site cleanup. While the Chamber supports that part of the plan, Alaimo said that regulatory reform is key.

In the meantime, the proposal has stalled in the Michigan House and Senate but that doesn’t mean it’s dead. Alaimo said the Chamber and businesses need to to monitor any trash tax progress since the Legislature will likely keep the conversation going.

A final Michigan budget must be signed by October 1.