The town of Greenfield recently instituted a substantial supplementary

The town of Greenfield recently instituted a substantial supplementary tax on all households, whereby each household is taxed in proportion to the volume of the trash that it puts out for trash collectors to pick up, as measured by the number of standard-sized garbage bags put out. In order to reduce the volume of the trash on which their tax bill is based, Greenfield households can deliver their recyclable trash to a conveniently located local commercial recycling center, where such trash is accepted free of charge.

The supplementary tax provides some financial incentive to Greenfield households to do each of the following EXCEPT

This is a great question with a subtle catch. Actions of households are rewarded in the form of financial incentives in indirect form. The lesser the volume of the trash a household has the lesser the tax it gives. Also, recyclable trash is exempted(at least as can be inferred) from supplementary tax since it is accepted free of charge whatever be the volume.

(A) sort out recyclable trash thoroughly from their other trash - WRONG. The act is incentivized indirectly since the volume is lessened after recyclable trash is separated.

(B) dump nonrecyclable trash illegally at parks and roadsides - CORRECT. Its clear straight forward that this act does not lead to incentives rather to fines, may be, since it is not mentioned in the argument. The option takes things in opposite direction if not to incentives.

(C) compress and nest items of nonrecyclable trash before putting them out for pickup - WRONG. Compressing reduced the volume of trash thus incentives.

(D) deliver recyclable materials to the recycling center instead of passing them on to neighbors who want to reuse them - WRONG. This is closest to the correct answer. The act of passing on the recyclable materials to neighbors is not mentioned in the argument but households do so then they are not incentivized anyway but delivering recyclable materials to recycling centers would not cause anything to them.

(E) buy products without packaging or with recyclable rather than nonrecyclable packaging - WRONG. With standard packaging would cost since the ackaging would increase the volume thus increasing the tax. A recyclable packaging would not increasing the volume on the other hand.

IMO Answer B.