Audience: Businesses
The Tire Recycling Fee is levied on each new tire sold in Maryland. The fee applies to the first sale of a tire in Maryland. The tire recycling fee is imposed on those who sell tires rather than on those who purchase them. This excludes sales to tire wholesalers or to an out-of-state retailers. The fee is $.80 on each new tire.
By its nature, the fee being imposed on tire sellers and not purchasers, there are no exemptions for retail customers. The fee need not be passed on to a retail customer as a separate charge or tax. If you choose to show the fee as a separate charge to the retail customer, be sure to exclude it from the amount subject to the sales and use tax.
The tire recycling fee applies when:
The fee does NOT apply when:
Out of state businesses
Out-of-state businesses are still required to pay the fee for orders that were placed in Maryland whether the order was taken by a traveling salesman or a branch location. If the order is placed at the out-of-state home office, the fee will not apply until a subsequent sale is made.
What is the tire recycling fee?
It is a fee of 80 cents that is levied on each new tire sold in Maryland. The fee applies to the first sale of a tire in Maryland which is not a sale to a tire wholesaler.
How much is the fee?
The fee is $.80 on each new tire.
Are any retail customers exempt from paying the fee?
No. By its nature, the fee is imposed on tire sellers and not purchasers. For this reason, there are no exemptions for retail customers. The fee is applicable to tires purchased by nonprofit organizations of any description, federal, state and local governments, and diplomats.
When is the fee applicable to tires purchased from out-of-state?
The tire recycling fee applies to the first sale in Maryland which is not a sale to a tire wholesaler or an out-of-state retailer. If a retailer acquires tires from out-of-state and the only sales which take place in Maryland are the sales to retail customers, the fee becomes payable when the retail sales are made.
If I am a retailer who must pay the fee when I sell tires to retail customers, am I required to pay the fee on no charge replacement tires?
No. The tire recycling fee is payable only in the case of sales. However, the fee is payable on a tire that is sold at a reduced price pursuant to a guarantee.
Is an out-of-state manufacturer or wholesaler who makes sales to retailers through traveling salesmen required to sell the tires on a fee-paid basis?
The fee is applicable if the orders are placed in Maryland. If the orders are placed at the out-of-state home offices of the manufacturer or wholesaler, the fee will not apply until a subsequent sale is made.
Do I report the recycling fees due on my regular Maryland sales and use tax report?
No. You must register a separate account for filing and paying the tire recycling fee. You may register for a tire fee account online.
Do I have to keep any records to prove I paid the fee if I am a tire dealer?
Yes. You must keep the following records for four years (unless you receive permission from the Comptroller's Office to have the records destroyed earlier):
Who must pay the tire recycling fee to the state?
If you are a tire wholesaler, or a tire retailer who buys tires from out-of-state sources, you must register to pay the tire recycling fee. Wholesalers must sell tires to retailers on a fee-paid basis only. Buyers who are not tire wholesalers may not buy tires free of the fee from Maryland wholesalers and then remit the fee directly to the state comptroller.
Who does not need to register for the recycling fee?
Tire dealers and service station operators who purchase all their tires from Maryland wholesalers do not have to register to pay the recycling fee.
Who is a tire wholesaler?
A tire wholesaler is a person who routinely sells tires to a person who is not a consumer. A tire wholesaler may also be a person who sells tires at both retail and wholesale. However, a person who sells a minimal number of tires on an irregular and non-continuous basis to other tire dealers is not a tire wholesaler.
Can a new car dealer be considered a tire wholesaler?
Yes. A new car dealer who routinely sells new cars to other dealers is a tire wholesaler for the purpose of the tire recycling fee. A new car dealer who is a tire wholesaler may acquire tires, including tires mounted on new vehicles, free of the fee.
I operate a number of wholesale locations. Do I need a separate tire recycling fee account for each location?
No. Unlike the sales and use tax, there is no requirement to maintain a separate account for each location. A single return should be filed covering all of a tire dealer's locations.
How do I register for the tire recycling fee?
You may register for the tire recycling fee by filing a Combined Registration Application with the Comptroller's Office. If you have a business tax registration with the Comptroller's Office, we can open a tire recycling fee account for you in just minutes by telephone. Telephone registration eliminates the need for you to fill out a Combined Registration Application. Just give us a call at 410-260-7980 or toll-free from elsewhere in Maryland at 1-800-638-2937.
What tires are covered by the recycling fee?
Pneumatic tires intended for use on a motor vehicle or on any vehicle designed to be transported or towed by a motor vehicle are covered. The fee also specifically applies to new tires sold with new cars, trailers, farm equipment or similar machinery. However, the fee is not applicable to bicycle tires.
If I sell a new car, is the recycling fee applicable to a spare or "doughnut" tire included with the car?
Yes, in this situation, the dealer is responsible for the tire recycling fee on five tires.
Does the recycling fee apply to sales of retreads or used tires?
No. Only new tires are subject to the fee.
Is a wholesaler or manufacturer who sells tires to a retailer required to show the recycling fee as a separate item?
Yes. The fee must be shown separately in these sales.
Do I have to show the tire recycling fee as a separate item in a retail sale?
No. If you elect to show it separately, however, the tire recycling fee is not subject to the Maryland sales and use tax.
How are sales to tire wholesalers handled?
The tire recycling fee does not apply to sales of tires to a tire wholesaler. If a tire dealer does not know or cannot ascertain whether or not a buyer is a tire wholesaler, the dealer should request a written certificate from the buyer certifying that the buyer is a tire wholesaler.
What should a tire wholesaler certificate say?
The certificate need not be in a particular form, but it should be signed, set forth the buyer's name and address and contain the buyer's recycling fee account number. It is not necessary to have a certificate for each purchase.
How can I tell whether a buyer's recycling fee account number is valid?
A recycling fee account is an eight-digit number and contains no alphabetic characters. The validity of a number can easily be verified by calling our Taxpayer Registration Assistance Center at 410-767-1300.
If I take a tire wholesaler certificate from a customer, am I relieved of all liability for the tire recycling fee on sales to that customer?
No. A certificate does not relieve a tire dealer from paying the fee unless it is accepted in good faith. A tire dealer who knows or should know that the buyer is not a tire wholesaler is required to pay the fee on tires sold to that buyer without regard to any certificate which that buyer may provide.
The tire recycling fee is due to be filed and paid on a semi-annual basis in January and July. Use the pre-printed vouchers that are issued after the account is registered to file and pay.
Semi-annual due dates are as follows:
| PERIOD | DUE DATE |
|---|---|
| 1st half of year | July 21 |
| 2nd half of year | January 21 |
Tire recycling can also be filed on a monthly basis. A person who is responsible for paying the tire recycling fee on tires sold during the course of a month shall file with the Comptroller a report of those sales, accompanied by payment of the tire recycling fee, by the 21st day of the succeeding calendar month.
The voucher and payment should be mailed to:
Revenue Administration Division
Comptroller of Maryland
Remittance Processing Center
110 Carroll Street
Annapolis, Maryland 21411-0001
A tire wholesaler is one that routinely sells tires to one that is not a consumer, such as a retailer or service station. A tire wholesaler may also be one that sells tires on both a retail and wholesale basis. However, one who sells a minimal number of tires on an irregular and non-continuous basis to other tire dealers is not a tire wholesaler.
The tire-recycling fee is not applicable on sales of tires to wholesalers. If a tire dealer does not know or cannot ascertain whether or not a buyer is a tire wholesaler, the dealer should request a written certificate from the buyer certifying that the buyer is a tire wholesaler. It is not necessary to have a certificate for each purchase.
The certificate should contain the buyer's name, address, the recycling fee account number and be signed. The recycling fee account is an eight-digit number and contains no alphabetic characters. To check the validity of an account number, call Taxpayer Service at 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m.
The certificate does not relieve a tire dealer from paying the fee unless it is accepted in good faith. A tire dealer who knows or should know that the buyer is not a tire wholesaler is required to pay the fee on tires sold to that buyer without regard to any certificate which that buyer may provide.
The tire recycling fee is due to be filed and paid on a semi-annual basis, using pre-printed vouchers that are issued after the account is registered. Tire recycling can also be filed on a monthly basis. A person who is responsible for paying the tire recycling fee on tires sold during the course of a month shall file wit the Comptroller a report of those sales, accompanied by payment of the tire recycling fee, by the 21st day of the succeeding calendar month.
The voucher and payment for the appropriate filing period should be mailed to the Comptroller of Maryland by the due dates noted below.
| Period | Due Date |
|---|---|
| 1st half of year | July 21 |
| 2nd half of year | January 21 |
Mailing address
Revenue Administration Division
Comptroller of Maryland
Remittance Processing Center
110 Carroll Street
Annapolis, Maryland 21411-0001
If you are a tire wholesaler, or a tire retailer who buys tires from out-of-state sources, you must register to pay the tire recycling fee. Tire dealers and service station operators who purchase all their tires from Maryland wholesalers do not have to register to pay the recycling fee.
If your business has more than one location, you do not need to maintain a separate tire recycling account for each location as you do for the sales and use tax. A single return should be filed covering all of a tire dealer's locations.
You may register for the tire recycling fee by filing a Combined Registration Application with the Comptroller's Office; or you may register for the tire recycling fee online.
If you have a business tax registration with the Comptroller's Office, we can open a tire recycling fee account for you in just minutes by telephone. Telephone registration eliminates the need for you to fill out a Combined Registration Application. Just give us a call at 1-800-638-2937 or 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m.
Businesses must keep the following tire recycling fee records for four years (unless the business receives permission from the Comptroller's Office to have the records destroyed earlier):
The fee must be shown as a separate charge when a manufacturer or wholesaler sells tires to a retailer.
The wholesaler certificate need not be in a particular form, but it should be signed, set forth the buyer's name and address and contain the buyer's recycling fee account number. It is not necessary to have a certificate for each purchase.
See Business Tax Tip #16 - How to Prepare Your Maryland Tire Fee Report for more information.