PAINT STEWARDSHIP PROGRAMS IN THE U.S. About the PaintCare Fee Updated — June 2021

Paint stewardship laws require retailers 3. How much is the fee? The PaintCare fee is based on container size and varies to add a fee to architectural paint from one program to another: products and make sure they are not , , , , selling unregistered brands of $ 0.00 ─ Half pint or smaller $ 0.35 ─ Larger than half pint up to smaller than 1 gallon architectural paint. $ 0.75 ─ 1 gallon $ 1.60 ─ Larger than 1 gallon up to 5 gallons PaintCare District of Columbia, , PaintCare is a nonprofit organization established by the $ 0.00 ─ Half pint or smaller American Coatings Association to implement $ 0.45 ─ Larger than half pint up to smaller than 1 gallon manufacturer-led paint stewardship programs in states $ 0.95 ─ 1 gallon up to 2 gallons that pass paint stewardship laws. PaintCare currently $ 1.95 ─ Larger than 2 gallons up to 5 gallons operates programs in California, Colorado, Connecticut, District of Columbia, Maine, , Oregon, Rhode Minnesota Island, , and Washington, and is developing a $ 0.00 ─ Half pint or smaller program for New York. The main goal of PaintCare is to $ 0.49 ─ Larger than half pint up to smaller than 1 gallon decrease paint waste and recycle more postconsumer $ 0.99 ─ 1 gallon up to 2 gallons paint by setting up convenient drop-off sites in each state. $ 1.99 ─ Larger than 2 gallons up to 5 gallons 1. What is the recovery fee Vermont and how does it work? $ 0.00 ─ Half pint or smaller $ 0.49 ─ Larger than half pint up to smaller than 1 gallon The PaintCare program is funded through a paint $ 0.99 ─ 1 gallon stewardship fee called the PaintCare fee. The PaintCare $ 1.99 ─ Larger than 1 gallon up to 5 gallons fee is applied to the purchase price of architectural paint. The fee funds collection, transportation, and processing of New York unused postconsumer (leftover) architectural paint, public The fee structure for New York is not yet known. PaintCare education about proper paint management, and will propose a fee structure in the program plan for New administrative costs. The fee is paid to PaintCare by paint York, and it will be based on the anticipated costs to run manufacturers. This fee is then added to the wholesale the program. The fee must be approved by the state and retail purchase price of paint, passing the cost of oversight agency. Visit www.paintcare.org for updates. managing postconsumer paint to everyone who purchases paint. This reduces local and state government costs for Recommendations for Contractors paint management and provides a funding source for a Preparing Estimates more convenient, statewide paint management program. When estimating jobs, contractors should take the 2. Do retailers have to pass on the fee? PaintCare fee into account by checking with suppliers to make sure their quotes for paint products include the fee. Yes, each state or jurisdiction’s law requires retailers to pass on the fee to consumers, ensuring a level playing field Pass Fee to Customers for all parties. This requirement includes paint sold online PaintCare suggests that painting contractors pass on the on any e-commerce websites. fee to customers in order to recoup the fee they pay. Tell customers that quotes include the PaintCare fee and that the fee funds a statewide paint recycling program.

4. How is the fee initially calculated? 10. How does the public know about the fee? When a new program starts, the fee is set to cover the cost PaintCare provides public education materials to retailers. of a fully implemented program. PaintCare estimates These materials explain the purpose of the fee, where to annual sales of paint in each state and then divides the take paint for recycling, and other information about the cost of the program in that state by the number of program. When a new state program begins, PaintCare containers sold in that state. Next, the fee is adjusted mails a package of materials to retailers. As needed, based on container size by taking into consideration the retailers may order additional free materials from typical percentage of unused paint for each size (e.g., the PaintCare at any time. In addition to retailer information, percentage of unused paint from one 5 gallon container is PaintCare works with contractor associations to provide typically less than from five 1 gallon containers). information to trade painters and conducts general outreach including newspaper, radio, television, and online PaintCare is a nonprofit organization, so the fee may be advertising. decreased if set at a level beyond what is needed to cover program expenses. Likewise, the fee may be increased if 11. How do we as retailers know what products PaintCare does not collect enough revenue to cover the to put the fee on? costs to operate the state program. Suppliers’ invoices should indicate that you are being 5. Are retailers required to show charged the fee, so you simply pass on the fee for those the fee on receipts? items. Additionally, PaintCare and each state’s oversight agency list all architectural paint manufacturers and No, but PaintCare encourages retailers to do so and to brands that are registered for the program on their display it as PaintCare fee to aid in consumer education. websites. Retailers may not sell brands that are not Most stores choose to show the fee on their receipts in registered with the program. If your store sells order to inform the consumer about the PaintCare program architectural coatings that are not on the list of registered and to explain the price increase. products, please notify PaintCare so we can contact the 6. Do retailers return the fee if someone returns manufacturer to get them registered. a product? 12. What products are covered? Yes. The fee should be returned as part of the purchase The products accepted at PaintCare drop-off sites are the price. same products that have a fee when they are sold. PaintCare Products include interior and exterior 7. Is the fee taxable? architectural coatings sold in container sizes of five Yes, the fee is part of the purchase price of paint. Sales tax gallons or less. They do not include aerosol products is collected on the fee in most cases, except in Oregon, a (spray cans), industrial maintenance (IM), original state that does not have a sales tax, and Maine, per equipment manufacturer (OEM), or specialty coatings. For supplemental legislation. a detailed list of PaintCare and non-PaintCare products, please visit www.paintcare.org/products-we-accept. 8. Is the fee to be applied to paint sold to customers who are exempt from sales tax? FOR NEW PROGRAMS Yes, government agencies and other organizations that are 13. Do we apply the fee to sales on the first day exempt from sales tax in PaintCare States must still pay the fee, because it is part of the price of paint. However, of the program for inventory purchased before the fee, like the rest of the product price, should not be the first day of the program, even though we taxed for sales tax-exempt organizations. didn’t pay a fee for the product to the distributor or manufacturer? 9. Is the fee a deposit that is returned to Yes, retailers must add the fee on all covered products sold customers when they bring paint on or after the first day of the program, regardless of when to a drop-off site? (before or after program launch) they were purchased from No, the fee is not a deposit. The fee is used entirely to the distributor or manufacturer. cover the cost of running the program.

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