The Environmental Conservation Law imposes a $2.50 per tire waste tire and recycling fee on sales of most new tires sold at retail within New York State. The Tax Department is responsible for administering the collection of the fee.
Who must collect the fee
If you are a tire retailer, including a car dealer or an auto repair shop, you must collect the $2.50 per tire fee on most new tires sold. You must remit $2.25 for each tire sold when you file the waste tire management fee return. You can keep 25 cents for each tire sold to cover your administrative costs.
Sales subject to the fee
The fee applies to new tires you sell in New York State for use on nearly all self-propelled or towed vehicles that qualify to be registered under the Vehicle and Traffic Law including:
- motor homes
- all-terrain vehicle
- limited-use vehicles
- low-speed vehicles having a maximum performance speed of more than 20 but not more than 25 miles per hour; and
- limited-use motorcycles having a maximum performance speed of 40 miles per hour
The fee also applies to new tires you sell in New York State with a new or used vehicle, including spare tires, whether they are full-size or for emergency use only.
The waste tire management fee does not apply to sales of recapped or used tires. It also does not apply to mail-order, phone-order, or internet sales.
The following sales of new tires are not subject to the waste tire management fee:
- Sales to New York State, its agencies, instrumentalities and political subdivisions;
- Sales to the United States, its agencies, and instrumentalities;
- Sales to limited dividend housing companies exempt under section 93(1) of the Private Housing Finance Law;
- Sales to nonprofit property and casualty insurance companies exempt under section 6707 of the Insurance Law;
- Sales of tires for resale; and
- Sales of tires for exempt vehicles including:
- electric wheel chairs
- golf carts
- go-peds (skateboards and scooters that have a motor and a handle for a standing rider)
- motor-assisted bicycles
- vehicles that run only on rails or tracks.
Who must pay the fee on tires sold for use on leased or rented vehicles
The lessor of a vehicle is responsible for paying the fee when he or she purchases a vehicle to lease or rent to customers.
The purchaser of the tires is responsible for paying the fee when he or she purchases new replacement tires for a leased or rented vehicle. Therefore, if a lessee purchases new replacement tires for a leased vehicle, he or she is responsible for paying the fee.
When to file and pay
You must file a waste tire management fee return with the Tax Department and pay the required fees on a quarterly basis. Even if you make no sales of tires subject to the waste tire management fee during the quarter, you must still file a waste tire management fee return for the quarter. The return and payment are due within 30 days after the end of each quarter.
When you cease selling new tires, you must file a final waste tire management fee return and pay any fees due within 30 days of ceasing that operation, regardless of when the quarter ends.
How to file and pay
Log in to your Online Services account to file your return and make payment online using the Waste Tire File. Once logged in, select Other taxes, from the Services menu on the left-hand side of the page, and then select Waste Tire Web File to start your return. If you file sales tax returns, you probably already have an Online Services account. If not, it is quick and easy to create an account.
If you cannot file and pay online, file Form MT-170, Waste Tire Management Fee Return.
Reporting periods and due dates
Due date for filing return
December 1 through February 28 (29)
March 1 through May 31
June 1 through August 31
September 1 through November 30
For more information
TSB-M-03(3)M, Initiation of Waste Tire Management Fee on Sales of New Tires
TSB-M-03(5)M, Amendments to the Waste Tire Management and Recycling Fee on Sales of New Tires
TSB-M-04(2)M, Waste Tire Management Fee Changes for 2004
TSB-M-10(9)M, Waste Tire Recycling Fee Extended Until December 31, 2013
TSB-M-13(2)M, Waste Tire Management and Recycling Fee Extended until December 31,2016