The elimination of free bag tags for household garbage will be discussed Monday at a special Kincardine budget meeting.
Kincardine is the only municipality left in Bruce County that provides the free tags.
Kincardine Chief Administrative Officer Murray Clarke says in a report that the move towards paid tags will generate an additional $230,000.
Without that revenue, an additional tax rate increase of 2.3 percent would be required.
In his report, Clarke says there is clear evidence to demonstrate that a move to a full user-pay model increases waste diversion through recycling and general waste reduction from more prudent household and workplace management.
He also says user-pay models for household waste have become widely accepted in Canadian and United States municipalities.
Households in Kincardine receive 26 free bag tags yearly.