Waste tire management fee
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. The fee has been extended through December 31, 2022.
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. You must remit $2.25 for each tire sold when you file the waste tire management fee return. 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 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 three thousand pounds; and
- limited-use motorcycles having a maximum performance speed of 40 miles per hour
The fee also applies to new tires you sell at retail in New York State with a new or used vehicle, including spare tires, whether they are full-size or for emergency use only.
The lessor of a vehicle is responsible for paying the fee when they purchase a vehicle to lease or rent to customers.
The purchaser of the tires is responsible for paying the fee when they purchase new replacement tires for a leased or rented vehicle. Therefore, if a lessee purchases new replacement tires for a leased vehicle, they are responsible for paying the fee.
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.
New tire sales to the following are not subject to the waste tire management fee:
- New York State, its agencies, instrumentalities and political subdivisions;
- the United States, its agencies, and instrumentalities;
- limited dividend housing companies exempt under Private Housing Finance Law § 93(1); and
- nonprofit property and casualty insurance companies exempt under Insurance Law § 6707.
In addition, the following sales are also not subject to the waste tire management fee:
- tires for resale; and
- tires for exempt vehicles including:
- 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.
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. See Reporting period and due dates
If you are a tire retailer with more than one location in the state, and you file a combined sales tax return for all locations, file a combined waste tire management fee return for those same locations. Mark an X in the Multiple locations box on the return and indicate the number of locations covered by this report.
When you stop selling new tires, you must file a final waste tire management fee return and pay any fees due within 30 days of stopping those sales, regardless of when the quarter ends.
To file and pay online, each tire service will need to:
- Create a Business Online Services account with the Tax Department (or log in if you already have an account).
- Select the ≡ Services menu in the upper left-hand corner of your Account Summary homepage.
- Select Other taxes, then select Waste Tire Web File from the expanded menu.
For important payment information, see ACH debit block.
If you cannot file and pay online, file Form MT-170, Waste Tire Management Fee Return.
|Quarterly period||Filing due date|
|December 1 — February 28(29)||March 31|
|March 1 — May 31||June 30|
|June 1 — August 31||September 30|
|September 1 — November 30||December 31|
If you do not pay the entire net amount of fees due on or before the due date, you must pay interest on the amount of the underpayment from the due date of the return to the date full payment is made.
Compute additional charges for late filing and late payment on the amount of the fee due, but not paid, on or before the due date. Include all the following that are applicable:
- If you do not file a return when due, add to the amount of the past due fee an additional 5% per month or fraction thereof, up to 25% in the aggregate.
- If you do not file a return within 60 days of the due date, the amount in item A above cannot be less than the smaller of $100 or 100% of the amount shown on line 3, Fees due, of the return.
- If you do not pay the fee shown on line 3 of the return, on or before the day it is due, add to the fee an additional ½% per month up to 25% in the aggregate.
- The total of the additional charges in items A and C may not exceed 5% for any one month, except as provided for in item B above.
For more information on penalties, see Tax Law § 1085. If you think you are not liable for penalty charges, attach a statement to your return explaining the delay in filing, payment, or both.
- the fee charged must be reported separately on the invoice provided to the purchaser.
- 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 and empowered from time to time to examine the accounts and records of any tire service that imposes any costs or charges for the costs of the tire service for waste tire management and recycling as authorized by Environmental Conservation Law § 27-1913.3.
Lessee means a person or entity that holds possession of personal property (an automobile, for example) under a lease agreement.
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.
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.
- TSB-M-16(4)M, Waste Tire Management and Recycling Fee Extended Until December 31, 2019
- TSB-M-13(2)M, Waste Tire Management and Recycling Fee Extended until December 31,2016
- TSB-M-10(9)M, Waste Tire Recycling Fee Extended Until December 31, 2013
- TSB-M-04(2)M, Waste Tire Management Fee Changes for 2004
- TSB-M-03(5)M, Amendments to the Waste Tire Management and Recycling Fee on Sales of New Tires
- TSB-M-03(3)M, Initiation of Waste Tire Management Fee on Sales of New Tires