Based on a decade of water law and policy research, I believe that Michigan should either collect taxes on companies like Nestlé that harvest water or significantly raise the fees water bottlers must pay.
But Michigan does not tax bottled water production.
Lucido estimates that Nestlé would have to pay $20 million in taxes if his legislation were to become law.
The American Society of Civil Engineers recently gave Michigan’s infrastructure a D+ grade, estimating that the state underfunds drinking water systems by as much as $563 million per year.
Public resource, private use When state authorities sought public feedback, more than 80,000 Michiganders called on the state to deny Nestlé’s permit and only 75 people said they supported it.
This contentious permit probably sparked more public outrage than it might have had the state not granted it the same week it announced that it would stop providing free bottled water to Flint residents impacted by a water crisis.
Other states like Connecticut and Maine collect fees for bottled water production.
Chicago’s tax, designed to reduce plastic pollution by discouraging bottled water sales, generates about $10.5 million in annual revenue for the city and offers a model other communities may want to replicate.
This new ombudsman would carefully study the potential water conservation and revenue generation benefits from taxing bottled water.
As long as private companies are selling Michigan’s water, I believe, the state should at least tap portion of their profits to fund public water infrastructure improvements and wetland restoration.