Alabama Tire Dealers Association
"Serving the Tire Industry in Alabama"
Frequently Asked Questions
Scrap Tire Law
DOES
THIS FEE APPLY TO WHOLESALE TRANSACTIONS?
No, the fee applies at the point of sale from the retailer to the consumer.
DOES
THIS FEE APPLY TO BICYCLE TIRES?
Yes, all pneumatic tires.
DOES
THIS FEE APPLY IF THE CUSTOMER TAKES THE OLD TIRE WITH HIM?
Yes, the fee is on the new tire.
DOES
THE FEE APPLY TO MULTIPLE RETREADS ON THE SAME TIRE?
If the same tire is retread multiple times by the same consumer, then the
fee only applies to the first time the retread tire is purchased; however, if
the retread tire is processed multiple times and sold to different consumers
each time then the fee would apply each time the retread is resold.
DOES
THIS FEE APPLY TO FARMING AND LOGGING EQUIPMENT?
Yes, the fee applies to all pneumatic tires.
DOES
THIS FEE APPLY TO THE TIRES ON NEW VEHICLES?
No, this fee is only on replacement tires.
DOES
THIS FEE APPLY TO TIRES PURCHASED BY GOVERNING BODIES?
No. Federal, state, and local governing bodies are exempt from payment of this
fee.
WILL
THE STATE OF ALABAMA BE RESPONSIBLE FOR DISPOSAL OF THE SCRAP TIRES?
No, the Revenue Department is only responsible for collecting the environmental
fee. According to Environmental Management, nothing has changed regarding the
disposal of the scrap tires.
DO
I CHARGE SALES TAX ON THIS FEE?
You should not charge sales tax if the fee is listed separately on the
customer's receipt; however, if the fee is included in the price of the tire
then sales tax would apply.
HOW
CAN I GET A COPY OF THIS ACT?
The website address is
www.legislature.state.al.us. (Then click on "legislation code &
constitution", click on "visit ALISON", click on "bills" then " status", type in
HB186, click "get status", click on "HB186" and then click "view")
WHAT
IS THE PROCEDURE TO GET SET UP TO REMIT THIS FEE?
Complete the application and return it to this office for processing. You will
then be assigned an account number and mailed the coupon booklets for remitting
the fee monthly. There is no application fee.
DO
I STILL HAVE TO HAVE THE SCRAP TIRE LICENSE REQUIRED UNDER THE PREVIOUS LAW?
Yes, the scrap tire license law expires September 30, 2004.
FOR
THE FISCAL YEAR ENDING SEPTEMBER 30, 2004, DO I HAVE TO PURCHASE THE SCRAP TIRE
LICENSE AND PAY THE SCRAP TIRE ENVIRONMENTAL FEE?
Yes, for 2004 you will have to pay both.
DOES
THIS FEE APPLY EVEN IF WE DO NOT ACCEPT THE OLD TIRES?
Yes, this fee applies to the sale of the replacement tire.
DO
I STILL HAVE TO PAY SO MUCH PER TON TO HAVE THE OLD TIRES REMOVED FROM MY
LOCATION AND CHARGE THE DISPOSAL FEE?
Yes, because you will still be responsible for disposal of the tires. The State
is not responsible for picking up the used tires. Nothing has changed regarding
the disposal of the tires.
WILL
I CHARGE THE CURRENT DISPOSAL FEE AND THE NEW $1.00 PER TIRE FEE TO THE
CUSTOMER?
Yes, the current disposal fee is what you charge the customer. The new $1.00 per
tire fee will be remitted to the State.
IF
I DO NOT RECEIVE THE FORMS TO FILE IN SEPTEMBER, WILL THE FEE STILL BE DUE?
Yes, the fee will still be due. We are in the process of getting forms printed
and they will be mailed to you based upon receipt of your application. If you do
not receive your forms, contact us before the due date of your first return.
CAN
THE DEPARTMENT INCREASE THE FEE?
No, there is no provision for the fee to increase.
HOW
WILL THIS FEE BE USED?
This fee will be used to clean up the illegal dump sites for tires. This fee is
earmarked for the disposal and recycling of scrap tires. ADEM’s Solid Waste
Management Branch is responsible for distribution of the fee’s collected.
IS
THIS FEE $1.00 PER TIRE OR $1.00 PER CUSTOMER?
The fee is $1.00 per tire, so if a person buys 4 tires the total fee due is
$4.00.
DOES
THIS $1.00 PER TIRE FEE APPLY ON RECAPPED TIRES WHERE THE BUSINESS RECAPPING THE
TIRE ONLY CHARGES FOR THE RUBBER USED TO RECAP?
No, as long as the tire being recapped belongs to the consumer and the consumer
does not receive a replacement tire.
IF
FEE IS CHARGED SEPARATELY, CAN WE LIST THIS FEE IN THE SALES TAX AREA OF THE
INVOICE?
No, if you list it in the sales tax area then you have to remit sales tax on the
fee.
IF
A CAR DEALERSHIP SELLS REPLACEMENT TIRES TO THE CONSUMER, DOES THE DEALERSHIP
HAVE TO COLLECT THE FEE?
Yes, the dealership would collect the fee from the consumer and then remit the
fee to the State of Alabama.
IF
REPLACEMENT TIRES ARE SOLD TO LEASE COMPANIES, IS THE FEE APPLICABLE?
The lease company is considered the consumer and the fee would apply.
IF
REPLACEMENT TIRES ARE SOLD TO CAR AUCTIONS, IS THE FEE APPLICABLE?
Yes, the auction is considered the consumer and the fee would apply.
IF
THE TIRES ARE UNDER WARRANTY, WOULD THE FEE STILL APPLY TO THE REPLACEMENT
TIRE(S)?
Yes, the fee would be due on the replacement tires.
AS
A CAR DEALER WHO IS NOT A TIRE DEALER BUT CONTRACTS WITH A TIRE DEALER TO
REPLACE TIRES ON VEHICLES, DOES THIS FEE APPLY?
The car dealer (as the consumer) would remit the fee to the contracted
tire dealer. The tire dealer should invoice the car dealer showing the scrap
tire fee charged and then the car dealer can recoup the price of the tire plus
the fee from the consumer.
I
PURCHASE TIRES TO INSTALL ON TRAVEL TRAILERS, AM I REQUIRED TO REMIT THE FEE OR
DO I PAY THE FEE TO MY SUPPLIER?
You should remit the fee to your tire supplier. You are the consumer of
the tire because you are placing the tire on the trailer. You are selling the
trailer, not the tire.
This page last updated August 14, 2003.
Copyright © 2000 by Alabama Tire Dealers
Association
Created by Sabrina Lentz Knop--SLK Tire Designs