The tire fee is a fee collected by the seller on the retail sale of every new vehicle tire sold.
The studded tire fee is a fee collected by the seller on the retail sale of every new studded tire sold.
Tire sellers must collect a $1 tire fee on the retail sale of every new tire sold for vehicles.
Tire sellers must collect a $5 studded tire fee and the $1 tire fee for each retail sale of studded tires.
Yes. If any of the following conditions are true, the tire fee is not charged:
Yes. If a customer returns a tire and is refunded the entire selling price, the tire fees are refundable as well.
Yes. The seller may retain 10% of the tire fees. The remaining 90% of the tire fees must be paid to the department.
Therefore, a seller may retain $.10 per new tire sold, and $.50 per studded tire sold.
No. Tire fees are not subject to retail sales tax.
Sellers must report the number of new vehicle tires sold, under the Tire Fee classification in the “Other Taxes” section. Studded tires sold will be reported under the Studded Tire Fee classification.
The amount paid to the department is calculated by multiplying the number of tires sold by the rate.
Example: 23 new tires sold x $.90 = $20.70; 23 studded tires sold x $4.50 = $103.50
Yes. A seller must pay Service and Other Activities business and occupation (B&O) tax on the 10% portion of the fee kept by the seller.
Sellers, who fail to collect these fees or pay the fees to the department, even if the failure is the result of a circumstance beyond their control, are personally liable for the amount of the fee.
Sellers who fail or refuse to collect these fees with the intent to gain an advantage or benefit are guilty of a misdemeanor.