A new California law will compel carpet makers to tack on a 5-cent per yard tax on carpet sold in The Golden State starting July 1, one of several rules that could drive up carpet costs at a time when the industry is struggling to recover from deep cuts and steep sales declines.
If worse comes to worst, new environmental regulation on carpet could make rugs and carpets cost-prohibitive to sell in some states, which in turn would cost jobs in Chattanooga and North Georgia, industry officials say.
The Carpet America Recovery Effort, or CARE, will use revenues from California’s newest levy as an enticement to spur carpet recycling efforts throughout the state, similar to how many states collect a surcharge to support the recycling of tires – another petroleum product.
Consumers will foot the bill for the new law (AB 2398) in the form of slightly higher prices on all carpet shipped to California for sale.
But supporters of the bill claim it’s a small price to pay to keep millions of tons of carpet from landfills.
