Wanting to Pull the Plug on the 'Toilet Tax'

Link : http://story.news.yahoo.com/news?tmpl=story&cid=573&ncid=757&e=8&u=/nm/20041004/od_nm/toilets_dc

SANTA FE, New Mexico (Reuters) - Santa Fe's "toilet tax," designed to offset water use by new businesses in the desert town, has some businesses wanting to flush the system entirely.



Two years ago, the city passed a law requiring new businesses to install low-volume toilets, which use 1.6 gallons of water per flush as opposed to conventional toilets, which use 3.6 gallons.


Depending upon the size of the business and its potential water use, the city often makes owners buy $350 "credits" that pay for the installation of low-water-use toilets in other parts of the city, such as older homes or apartments.


Plumbers receive the bulk of the money from the credits to replace the toilets. Santa Fe gets $40 for each credit it processes.


Thousands of new toilets have been installed since the ordinance took effect in 2002 in response to the severe drought conditions plaguing the Southwestern United States.


But Santa Fe (population 62,000) is running out of toilets to retrofit.


Critics argue the so-called toilet tax now serves only to bolster the income for plumbers and the city.


Business owners and developers in the city said the credit system is adding thousands of dollars to their costs and is hurting development.


"They say they want new business here, but they make it very difficult," said Will Adams, who had to spend nearly $18,000 dollars on toilet taxes to open his bar in downtown Santa Fe. "I'm all for saving water, but this definitely wasn't in our budget."


Local lawmakers are thinking of cutting the city's $40 administrative fee, but it appears the broader toilet tax isn't going to disappear anytime soon.


And that's good news for at least one city plumber.


"These credits are like gold," said Mike Calabaza of Cartwright's Plumbing. "If they don't buy them, they don't open their store. And there's only so many credits out there."