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Taxing Water and Other Harebrained Schemes

Posted by Rick Moldovanyi / November 22, 2007

Taxing Water
So the City of Toronto is thinking about taxing bottled water. Well, it was, until it realised that the vast number of retailers selling bottled water would make the tax nearly impossible to collect. And, oh yeah, the tax would also likely be illegal. The City of Toronto Act does allow the city to impose its own taxes, but it prohibits sales taxes outside of alcohol, cigarettes, and entertainment. So what is the city thinking?

Yes, Toronto is faced with a severe budget shortfall but taxing WATER? I understand that many people feel bottled water is unnecessary. Some even call the bottled water trend dangerous and irresponsible. Point taken. However, I really don't see people filling up bottles at home and carrying them around with them. What happens when those bottles run empty? I don't know about you, but I don't see too many public drinking fountains on the streets of Toronto. Would we have to resort to sticking bottles in the Dundas Square fountains?

Besides, even if you were planning on only drinking tap water, the city plans to raise the price on doing that too!

If the city is really thinking of adding on a (possibly illegal) tax, why not tax pop? People need water to properly hydrate themselves, especially on hot days, but Coke or Pepsi are hardly necessities. A tax on pop may even lead people to drink more water, since it would be cheaper than its evil carbonated big brother. And while we're at it there are some "Super Value Menus" that could use a few extra taxes. Again, tax products that aren't necessary and can lead to illness. Isn't that why alcohol and cigarettes are taxed higher than other goods?

Clearly taxing water is not the solution. But what is?

Discussion

33 Comments

Rebecca / November 22, 2007 at 11:15 pm
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First of all, water comes from taps. Pop does not. While I'm not a pop advocate, I despise that we're able to buy copious amounts of bottled water in the City of Toronto when we can purchase reusable plastic bottles and fill these from tap water. The writer's argument about dehydration does not stand up--buy a Nalgene or other brand of reusable bottle, fill it from your tap, refill when necessary, and you have enough hydration to last your day.
Rick / November 22, 2007 at 11:26 pm
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And where do you refill that bottle if you're out all day in the city?
Marcus / November 22, 2007 at 11:44 pm
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As a compromise I simply reuse the bottles that I buy. When I go out I bring a bottle with me that I filled at home. If it runs out somewhere that I can't fill it up and I really need water then I'll buy a new one. I certainly use less bottles this way, but it's still relatively convenient.

That said, I think this tax is a bad idea for a lot of reasons. Aside from being practically impossible to implement and largely illegal, I think there are plenty of other tax options within the City of Toronto Act which makes a lot more sense.

E.G., I'd be happy to pay more (up to maybe $0.25 or $0.50) for a pint of beer at a bar/restaurant/etc. It's a negligable amount to me but I expect it would raise a fair amount of money for the city.

The oft referenced levy for driving downtown would be great, especially since it would serve the dual purpose of raising revenue and reducing congestion and car usage. Of course, I would only want to see this if the money was earmarked from the start for the TTC.
J / November 23, 2007 at 12:12 am
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Tax it real good. Bottled water is just about as wasteful as it gets. Oil is used to make the bottle, treat the water, transport the bottle and keep it chilled in the store. Then used more energy to carry the empty bottle to be recycled (using more oil). Evian <-> naivE.
Rick Mason / November 23, 2007 at 12:31 am
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"However, I really don't see people filling up bottles at home and carrying them around with them. "

It's really not that hard. I've been carrying all the water I need with me wherever I go for years. I have a few different bottles so I can choose whatever meets the needs of a given situation.

If they can get away with it I say tax it!
Rick / November 23, 2007 at 12:37 am
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I corrected the spelling of "harebrained" thanks to the comments of a reader and using this source:
http://www.bartleby.com/61/43/H0064300.html
Ryan L. / November 23, 2007 at 12:53 am
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The tax should be included in current prices for bottled water. It was one of the largest profit margins for soft drink companies. Let them take the tax hit.
Matt / November 23, 2007 at 01:43 am
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Really, it's hare-brained not hair-brained? Boy you learn something new every day.
dee / November 23, 2007 at 02:34 am
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It's actually kinda dangerous to be refilling bottles in the first place. Depending on the type of bottle used, after the initial use toxins can leak into your water from the bottle. true story.

plus, with the increase in consumption of bottled water, where are all the bottles going? Perhaps they need the extra tax money to fund recycling... or perhaps, they're just crooks.
Chris Orbz / November 23, 2007 at 02:52 am
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My friend would always carry a Grolsch swing-top bottle full of water with him... got us thrown out of a bar once, actually, when security decided he was bringing his own booze in. Oh, also one of us was rolling a tobacco cigarette. If I remembered the name of the bar, I'd be trashing them here.
Denis / November 23, 2007 at 02:53 am
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Are you questioning how people survived without bottled water? Do you not remember what it was like 10 years ago? Water fountains are PERFECTLY SAFE. They would be a huge liability for the city if they weren't. They're tested like all the time.
Rick / November 23, 2007 at 07:14 am
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Still no one has answered my question: Where are these water fountains around the city? I honestly don't know.

Yes, people can survive without bottled water, but the point was that there are better (and more unnecessary) things to tax than water.
CA / November 23, 2007 at 07:21 am
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I remember crossing the bridge heading to the Danforth in the sweltering heat. I went to a McDonalds and asked for water and ice. They gave it to me for free. I had a water bottle in my bag. I suppose I could have filled it up in the bathroom sink.

Where are there water fountains in the downtown area?
CR Sutherland / November 23, 2007 at 07:33 am
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Don't forget the Heat Alert Days QWhen The City Will Hand Out Free Bottled Water To Seniors. Some Companies Do This To Promote Their Products. Wonder What The City Is Up To In This Case ?
As Dear Old Dad Often Said "You Ain't Seen Nothin Yet Kid.."
Is The City Of Tornto Act Working For You ?
Ben / November 23, 2007 at 09:33 am
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Most big parks have a water fountain in them somewhere. As a nice touch, there is generally a little basin in the bottom that can be filled so that dogs may drink too.

I believe that Dundas Square has one at the South-West corner. There is one in Trinity - Belwoods adjacent to the Northern baseball diamond. Bickford park has one at the North end as well.

Obviously the streets aren't lined with the things though.
John Duncan / November 23, 2007 at 10:11 am
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"Where are there water fountains in the downtown area?"

Adjacent to the washroom in every office tower or retail area (i.e. PATH & the Eaton Centre).
We could certainly do with more fountains on the streets too, but it's not exactly hard to find one as it is now.
Gregg / November 23, 2007 at 11:11 am
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"It's actually kinda dangerous to be refilling bottles in the first place. Depending on the type of bottle used, after the initial use toxins can leak into your water from the bottle. true story."
^^ toxins leak into the water even when you drink that trusted brand of water initially in there .. bet on it.. however, a thorough rinsing of the bottle before re-use fixed this problem.

"Don't forget the Heat Alert Days QWhen The City Will Hand Out Free Bottled Water To Seniors"
^^ Everyone gets free water when they are handed out .. the problem is that they are usually expired and taste like plastic.. made me kind of pissed this summer.
Eli / November 23, 2007 at 11:24 am
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Almost every park has a drinking fountain. Bottled water is a relatively new phenomenon, and I think we'd be better off without it. Its sad that the tax won't go through. The city is broke and things that put such a strain on the environment deserve a hefty tax.
J / November 23, 2007 at 11:57 am
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Pretty much every building has taps connected to a source of clean, safe water. Toronto isn't rural India or Cambodia. Use the taps.
GeeBee / November 23, 2007 at 12:15 pm
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"And where do you refill that bottle if you're out all day in the city?"

This comment actually made me blurt out "Is this guy serious?".

Some readers already touched on this: it behooves of us to realize how much energy and waste it goes into making and drinking bottled water. The sight of empty plastic bottles stuffed in a waste bin is enough for any "harebrained" environmentalist to flip out and cry about the state of wanton human consumption. Slamming on SUVs but deriding bottled water taxation is a contradiction blogto might be wise to clear up on.

If you really want to compare costs, just know that the major companies generally make profits upwards of 200% on each bottle. Almost all of the cost in producing the bottled water goes to the packaging and marketing.

"But that's the mechanics of a free market system in motion, GeeBee." you argue. "Supply and demand!"

Well, think about it this way: if you choose to get your recommended eight glasses a day from bottled water, you could spend up to $1,400 annually. The same amount of tap water would cost about 49 cents.

That's the meat of your problem with the taxation, isn't it? To call out a proposal that's trying to check a largely unregulated and superficial industry as flippant and undeserving of thought? Yes, it's complicated and nigh impractical to take stock of all the retailers selling bottled water. Yes, it might be a little inconvenient to carry a water container and have it refilled everytime it runs out as opposed to just forking out a loonie and change for a bottle of water. Yes, it might possibly be illegal (the taxes). But to actually dismiss this initiative as just another case of overzealous politicians getting worked up over budget shortfalls?

You can criticize the finer points of this proposal and that's fine. But you don't. Instead we have you wondering "oh dear god, I just ran out of water in my container. Oh where, just where shall I find a place to refill my precious container in a city filled with cafes, restos, bars, washrooms and (ostentatiously sparse) drinking fountains, with people more than happy to fill it up from their sink? Truly, this is an impasse with no recourse."

Just ask. It's that simple.

Sorry for coming off as a little too snarky, but this was one post of yours that I just HAD to commment on. And be a little snarky.
Rick / November 23, 2007 at 12:27 pm
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"Slamming on SUVs but deriding bottled water taxation is a contradiction blogto might be wise to clear up on."
You do realise blogTO isn't a single person, right? It's made up of several people that have several different opinions.
But you make several good points and I respect that.

I do want to know why the city is a) wasting time on a proposal that will likely be shot down as illegal b) not thinking of taxing things like pop and junk food that have all of the same problems as bottled water with additional health issues and c) not installing more easily available drinking fountains throughout the city so that bottled water would be less necessary.

But thanks for the comment, I appreciate fact-based debate much more than random insults.
mongo / November 23, 2007 at 12:42 pm
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Constructive criticism: the graphic that accompanies this piece is below your usual standards. Way below.
GeeBee / November 23, 2007 at 12:57 pm
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Yes - I realize that blogto is a compendium of opinions from individuals with different ideas and thoughts. My address was more of a tongue-in-cheekery to the editorials at hand as a collective rather than as or at the establishment.

a) How is it wasting time to discuss about a proposal? "Discuss" being the key word here. Nothing's being set to stone or carved out here. It's just been discussed, and as such, there are obstacles and pitfalls that need to be addressed to accordingly. We have several acts and regulations that might hinder the fruition of this initiative, but that's just focussing on the pebbles and dismissing the mountain. Namely, the need to curb the rampant infiltration and misinformation of drinking bottled water that costs more per gallon than gasoline. Not to mention the environmental cost of creating and wasting all that plastic that fill up landfills and take thousands of years (if ever) to break down.

b) Pop and junk food are commodities. Water isn't. Let's not compare apples and oranges here. Water is a necessity and we pay annual fees to ensure that the govt. provides us a safe, clean drinking water. From the tap. Why pay more to support an industry that could be just packaging the same water and selling it under a label?

c) You don't really need drinking fountains to fill your water container up. It's the same water. You know the water that flushes your toilet? Same thing. And although I know it's an unsavoury thought to be thinking of water from the toilet as water that you drink, I just want to make the point that you can pretty much go to any cafe or bar and ask to have your container refilled (from the sink, preferably). Again: ask! It's that simple.

I think the issue at hand goes beyond just the technical dilemmas of taxing bottled water to the broader issue of wasteful consumption: how willing are you to find ways to consume less, than more?

Even if that means you might have to ditch that bottle of "sprinkled spring water" from your wholesome, nutritious cycle.
CA / November 23, 2007 at 01:08 pm
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I really don't think restaurants, bars and cafes are too keen to fill up water bottles for people, especially if there's an influx of people asking. Ever asked to use a bathroom without buying something first? I get the "Sorry, customers only" line a lot.

A lot of "food on the go" is packaged in wasteful containers; for example, single-sized Juice bottles. More people should brown bag their food as well.
CA / November 23, 2007 at 01:56 pm
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Bottled water is wasteful, I agree. And I always drink tap water around the house. I would never buy a case of bottled water and drink it. But I think some people are opposed to this tax because it's an issue of fairness.
Take this for example: Let's say I plan to run a short errand (don't take an empty bottle with me), but then I run into an old friend. We go for pizza. He orders a Fruitopia (full of sugar and no nutritional value). With the choices available: pop, juice (usually only orange actually has vitamin C -- grape, cranberry, grapefruit do not), I opt for water. Now why should I have to pay more tax for choosing something that is of better nutritional choice? It's not fair. Most bottled water companies also sell pop. But why wouldn't they be taxed for that instead?
CA / November 23, 2007 at 01:59 pm
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I think all 591 ml drinks should be taxed equally.
They all waste the same amount of plastic.
Elle Driver / November 23, 2007 at 02:04 pm
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I work in a yoga studio, and we currently stock SIGG bottles. Plastic bottles break-down over time (as any plastic product will) and will start leaching carcinogens into the water. Heat also speeds the break-down process - try drinking out of a plastic bottle after it's been sitting out in the sun, or if it's been stored in your bike's water holder all day, and you'll notice a difference in taste. SIGGS are a bit pricier, but they're well-made and last a lifetime.



GeeBee / November 23, 2007 at 03:26 pm
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@ CA:

Regarding your hypothesis: could you have asked for a cup of water instead of buying bottled water? I do that all the time at cafes, restaurants, and anywhere else that I pay for service. Now you could argue that no, they don't provide any glass of water, and it's true -- places like gas stations, pizzerias, convenience stores etc. don't provide such services. But let's say more and more customers start asking for glasses of water. Pretty soon, store owners will be inclined to hand out glasses of water, or fill water containers, because they see more people demanding it. Again, this is all hypothetical, but it is worth remembering that for a brief moment of a side-errand, you couldn't either ask for a glass of water or wait till you are someplace where you can get access to a glass of water. Convenience, it seems, is a point of diversion whereupon we can deduce the equivalency between a bottle of carbonated beverage and plain water.

It all falls back to a person's own conviction. Knowing that bottled water is a product created purely out of misguided want rather than need, I am willing to ask for a glass of water or try a little harder for a place that can provide me one. You can argue about the fairness of the taxes till the cows come home, but it's based solely on your personal appraisals rather than overall rationality.

Logic dictates that you save more over the long run by drinking water from the tap. Should this taxation be extended to other junk food? Maybe. Is this not permissible under the provincial or federal laws? Maybe. Does drinking bottled water prove the gullibility of consumers under heavy marketing schemes?

Absolutely.
James / November 23, 2007 at 04:06 pm
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I'm sort of an outsider to this all, but I wanted to provide my two cents. Drinking tap water is a great alternative, especially considering you can go to most retail stores and buy a water bottle that's got a spout on the top, and holds a liter or so of water. Anyone requiring a liter or more of water for a trip, in my opinion, is drinking more water than they need to be. They're going to be asking that question mentioned earlier to a restaurant or other store for the bathroom without paying. A liter of water isn't necessarily the smallest amount of water to be carrying around, but it's also not too big in size that it can't be carried. Back packs or purses, etc. would hold one pretty well.

I agree with the environmental aspects as far as what it means to drink bottled water as opposed to tap water. Plastic isn't one of the best materials for the environment anyway, hence the reason it's involved in a recycling program.

The idea of a tax on alcohol could also be stemmed to cigarettes, magazines, or even movie tickets. I wouldn't mind paying a dime more for a movie ticket, if I knew I was contributing to the city. I've got a bunch of dimes in the car I use for coffee money or parking, whatever I might need at the time. I could spare a couple whenever I go to a movie with my wife. There are millions of combinations, combined in small amounts, that could work under alcohol, cigarettes, and entertainment that would help contribute to the budget issues.

I personally think the biggest thing is the city, much like many other cities, sees the bottled water drinking trend we've developed, and looks at the small picture and how much it would mean if they were to collect on every purchase. The big picture might be something they need to look into instead, and remain legal with what they're allowed to tax. There's lots of potential in those three categories.
c / November 23, 2007 at 05:51 pm
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tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!tax it!
Ricky / November 23, 2007 at 06:18 pm
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What I don't understand is when people suddenly learn that there might be taxes on bottled water everyone freaks out like they're BANNING water. They're not banning water, it'll be like 10-25 cents more expensive. OHMYGOD. You won't be forced to suddenly drink from water fountains little princesses. It just means you have to pay a little bit more. Suck it up. It helps the environment and it'll help the city balance their sucky budget. All for the greater good?
Kenny / November 23, 2007 at 09:24 pm
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I buy 2 bottles of 1.5 L Nestle Pure Life for 57 cents each from Wal-Mart... when I'm done drinking the water out of those, I just head over to my filtered-tap water and refill the bottles everytime. No biggie. I wash'em when I need to and keep 1 bottle at home and 1 at work.

If I'm super thirsty, I'll just find a fountain or any tap.

Taxing the bottled water is a good idea, cuts down on oil-use, waste, packaging material, etc.
TonyB / December 12, 2007 at 01:59 pm
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Think of how much money the city would save if they did not have to recycle the bottles generated from bottled water usage!

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