Waste tire management and recycling fee

A tire service, such as an online tire retailer, automobile dealership, or auto repair shop, must collect the $2.50 fee per tire on most new tires sold at retail in New York State.

If a tire service installs tires that it did not sell, the tire service must collect the $2.50 fee on each new tire it installs unless the purchaser can show that the fee was previously paid to the seller.

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.

Note: To recover administrative costs, a tire service that maintains any physical retail location in New York State may keep twenty-five cents ($0.25) per tire from any fees collected from all sales of new tires. 

The fee applies to new tires sold at retail for use on nearly all self-propelled or towed vehicles including:

• cars,
• trucks,
• motor homes,
• buses,
• trailers,
• motorcycles,
• 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 pounds, and
• limited-use motorcycles having a maximum performance speed of 40 miles per hour.

The waste tire management and recycling fee does not apply to sales of recapped tires, used tires, or tires purchased for resale. 

Certain types of tires are exempt from the fee. These include tires for vehicles that are generally not required to be registered under the Vehicle and Traffic Law, such as:

• electric wheelchairs
• go-carts
• golf carts
• go-peds (skateboards and scooters that have a motor and a handle for a standing rider)
• mini-bikes
• motor-assisted bicycles
• vehicles that run only on rails or tracks

The waste tire management and recycling 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 or any international organization of which the United States is a member and such organization is the purchaser; and 
• Native American nations or tribes residing in New York state.

Purchasers that are exempt from the fee or purchasing tires for resale must complete Form MT-171, Waste Tire Management and Recycling Fee Exempt Purchase Certificate, and give it to the seller. For a full list of exempt purchasers and additional information, see Form MT-171. 

A tire service that is required to collect sales tax must report and remit any waste tire management and recycling fees collected with its sales tax return. Report the fee in the Calculate fees section of your return. For more information, see File sales tax returns.

For information about out-of-state business' requirements to register and collect sales tax, see Registration requirement for businesses with no physical presence in New York State. 

For sales tax filing periods and due dates, see Tax Bulletin Filing Requirements for Sales and Use Tax Returns (TB-ST-275). 

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 management and recycling fee is not subject to sales tax. The fee must be separately stated on the customer’s invoice.

A tire service must state on the invoice if the sold or installed tire is new, used, or recapped.

A tire service must maintain accurate records of:

• the 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 returns must be kept for three years. 

The New York State Comptroller is authorized to examine the records of any tire service to determine the costs incurred for waste tire management and recycling. 

Also see, Recordkeeping Requirements for Sales Tax Vendors (TB-ST-770).

Lease agreement is an arrangement, made between two parties, that allows one of those parties to use an asset belonging to the other.

Lessee means a person or entity that holds possession of personal property (such as an automobile) for consideration paid to a lessor 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. 

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 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. The United States of America and any of its agencies and instrumentalities, and New York State and any of its agencies, instrumentalities, public corporations, 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 (motor vehicles), 410 (motorcycles), 2261 (limited use vehicles) or 2282 (all-terrain vehicles). A motor vehicle includes every vehicle operated or driven upon a public highway which is propelled by any power other than muscular power with certain exceptions.

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.

Environmental Conservation Law § 27-1913