The term "bin bug" was coined in August 2006 by the British media to refer to the use of Radio Frequency Identification (RFID) chips by some local councils to monitor the amount of domestic waste created by each household.
The chip is scanned by the dustbin lorry and, as it lifts the bin, records the weight of the contents.
The tax would be in the form of a charge for households that exceed set limits of non-recycled waste.
The Local Government Association (LGA) provided £5 million to councils to fund 40 pilot schemes.
The RFID tag is located in a recess under the front lip of the bin, either as a self-contained unit or behind a plastic cap.