Waste tire management fee
Effective for filing periods beginning on or after March 1, 2023, you must report and remit any waste tire management fees collected with your sales tax return. For more information see, filing returns and paying the fee.
The Environmental Conservation Law imposes a waste tire and recycling fee of $2.50 per tire on retail sales of most new tires within New York State. The Tax Department is responsible for administering the fee.
Who is responsible for the fee
If you operate a tire service, including an automobile dealership or an auto repair shop, you must collect the $2.50 per tire fee on most new tires sold at retail (see exempt sales for more information). You keep 25 cents from each tire sold to cover your administrative costs.
The fee applies to new tires you sell at retail in New York State for use on nearly all self-propelled or towed vehicles that are required to be registered under the Vehicle and Traffic Law including:
- motor homes
- all-terrain vehicles
- limited-use automobiles and trucks having a maximum performance speed of more than 20 but not more than 25 miles per hour and whose gross vehicle weight rating (GVWR) is less than 3,000 lbs;
- limited-use motorcycles having a maximum performance speed of 40 miles per hour.
If you sell or lease new or used vehicles in New York State at retail, the fee applies to any new tires included in the sale or long-term lease. This includes spare tires, whether they are full-size or for emergency-use only.
The lessor of a vehicle is responsible for paying the fee when a vehicle is leased or rented for a period of less than one year (short-term lease).
If a lessee purchases new replacement tires for a leased vehicle, they are responsible for paying the fee. The lessee is also responsible for payment of the fee when they enter into a long-term lease of a vehicle that includes new tires.
The waste tire management fee does not apply to sales of recapped or used tires. It also does not apply to tires sold for resale, mail-order, phone-order, or internet sales.
Certain types of tires are exempt from the fee. This includes tires for vehicles that are generally not required to be registered under the Vehicle and Traffic Law such as:
- electric wheelchairs
- 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.
The waste tire management fee does not apply to purchases of new tires made by certain organizations. Examples of organizations that are exempt from paying the fee include:
- New York State and its agencies and instrumentalities;
- the United States and its agencies and instrumentalities;
- the United Nations and other international organizations; and
- Native American nations or tribes residing in New York state.
Purchasers that are exempt from the fee or purchasing tires for resale must fill out Form MT-171, Waste Tire Management Fee Exempt Purchase Certificate and give it to the seller. See Tax Bulletin Exemption Certificates for Sales Tax (TB-ST-240) for information about who may use exemption certificates and how to use them properly.
Filing returns and paying the fee
For filing periods beginning on or after March 1, 2023, you must report and remit any waste tire management fees collected with your sales tax return. Report the fee in the Calculate fees section of your return.
For sales tax filing periods and due dates, see Tax Bulletin Filing Requirements for Sales and Use Tax Returns (TB-ST-275).
Note: Your final separate waste tire management fee return, for the period ending February 28, 2023, is due by March 31, 2023. See Waste tire web file.
Penalty and interest
You could be subject to penalties, interest, or both if you fail to:
- register as a sales tax vendor to collect tax,
- file sales and use tax returns on time,
- collect and remit the proper amount of tax (and any fees) due, or
- keep adequate records.
For more information, see:
- Sales and Use Tax Penalties (TB-ST-805)
- Penalty and Interest Calculator
- Current interest rates
- Tax Law §1085, for penalties for filing periods before March 1, 2023
The waste tire fee:
- must be separately stated on the customer's invoice, and
- is not subject to sales tax.
You must state on the invoice if the tire, sold or installed, is new, used, or recapped.
You must maintain accurate records of:
- your actual costs for waste tire management and recycling, and
- any charges included in or on the sale of new tires for the purpose of waste tire management and recycling.
Copies of your returns must be kept for three years.
The Comptroller is authorized to examine the records of any tire service to determine the costs incurred for waste tire recycling and management. See Environmental Conservation Law § 27-1913.3.
Also see, Recordkeeping Requirements for Sales Tax Vendors (TB-ST-770).
Lessee means a person or entity that holds possession of personal property (such as an automobile) under a lease agreement.
Lessor means a person or entity that owns real personal property but agrees to rent it out to another under a lease agreement.
A Lease agreement is an arrangement, made between two parties, that allows one of those parties to use an asset belonging to the other.
Long-term lease means a lease that covers a period of one year or more. It also includes any lease for a period of less than one year that includes one or more options to renew or contains similar contract provisions which, if exercised would make the total period of the lease one year or more.
New tires mean tires that have never been placed on a motor vehicle wheel rim or tires placed on a motor vehicle prior to its original retail sale. It does not include recapped or resold tires.
Short-term lease covers a lease period of less than one year (including any options to renew).
Tire service means any person or business in New York state who sells or installs new tires for use on any vehicle and any person or business who engages in the retail sale of new motor vehicles. A person who is not the ultimate consumer and any governmental agency or political subdivision are excluded from this term.
Vehicles or Motor Vehicles mean any devices that could qualify for registration under Vehicle and Traffic Law §§ 401, 410, 2261 or 2282.
Waste tire means any solid waste which consists of whole tires or portions of tires. Tire casings separated for retreading and tires with enough tread for resale are included under this term, however, crumb rubber is not considered a solid waste.