44-1302. Sale of new tires; fees; acceptance of waste tires; notice; definition

(Rpld. 1/1/26)

A. A retail seller of new motor vehicle tires shall collect a fee of two per cent of the purchase price for each tire sold but not more than two dollars for each tire sold, which shall be listed separately on any invoice.

B. If in a sale of a motor vehicle by a manufacturer to a wholesaler or retailer the cost of the tires as a separate component of the motor vehicle is not specified by the manufacturer, the fee per tire to be collected shall not exceed one-half of the maximum fee permitted under this section for a motor vehicle with a gross vehicle weight under ten thousand pounds.

C. A wholesale seller of new motor vehicle tires who sells tires to this state or a political subdivision of this state or who sells tires to a private entity which does not resell the tires shall collect a fee of two per cent of the purchase price for each tire sold but not more than two dollars for each tire sold, which shall be listed separately on any invoice.

D. The fee shall be paid to the department of revenue for deposit on a quarterly basis in the waste tire fund established pursuant to section 44-1305. Unless the context otherwise requires, title 42, chapter 5, article 1 governs the administration of the fees imposed by this section, except that:

1. A separate license is not required for the fee imposed by this section. The fee shall be reported and paid on forms prescribed by the department.

2. A separate bond is not required of employees of the department in administering the fee.

3. The fee imposed by this section may be included without segregation in any notice and lien filed for unpaid transaction privilege taxes.

4. The fee imposed by this section shall not be included in computing the tax base, gross proceeds of sales or gross income from the sale of new motor vehicle tires for the purposes of title 42, chapter 5 and is not subject to any transaction privilege, sales, use or other similar tax levied by a city, town, or special taxing district.

E. A retail seller of new motor vehicle tires or a wholesale seller of new motor vehicle tires shall accept waste tires from customers at the point of transfer. A seller shall accept up to the number of new tires sold at that point of transfer annually and may accept additional tires from customers. The seller shall accept tires from a customer if the customer presents a receipt within thirty days of the date of purchase. This subsection does not apply to sellers of new motor vehicles.

F. A designated waste tire collection site established pursuant to section 44-1304, subsection G, shall require a manifest for the disposal of waste tires at the site and shall establish registration procedures for the collection site.

G. A seller of motor vehicle tires or the seller's designee complying with this section shall provide a manifest to the designated collection site established pursuant to section 44-1304, subsection G, to dispose of waste tires and shall be preregistered at the designated collection site.

H. A county or private enterprise under contract with a county may refuse to accept waste tires and may impose a tire tipping fee, not exceeding an amount necessary to recover the costs of administering a waste tire program established pursuant to section 44-1305, if any of the following conditions exists:

1. The private enterprise is not receiving waste tire fund monies from the county pursuant to section 44-1305.

2. Waste tires are manifested as originating outside of the county.

3. A seller of motor vehicle tires complying with subsection E of this section, is not preregistered at a collection site where registration is required.

4. The county's pro rata share of the total waste tire fund is two per cent or less, and after a year of receiving monies from the waste tire fund, the county determines that the cost of waste tire disposal exceeds the amount received.

I. A designated waste tire collection site established pursuant to section 44-1304, subsection G, shall not refuse to accept waste tires from a resident of the county who is not a seller of motor vehicle tires and shall not impose a tire tipping fee for up to five waste tires per year from a resident of the county who is not a seller of motor vehicle tires. Such waste tire collection sites may impose a tire tipping fee on waste tires in excess of five tires per year from a resident of the county who is not a seller of motor vehicle tires.

J. A seller of motor vehicle tires who is subject to subsection E of this section shall post a written notice which is clearly visible in the public sales area of the establishment and which contains the following language:

" It is unlawful to throw away a motor vehicle tire.

Recycle all used tires.

This retailer is required to accept scrap tires if any new or recapped tires are purchased here. When any new tire is purchased, an additional fee will be charged."

K. An advertisement or other printed promotional material related to the retail sale of tires shall contain the following notice in bold print:

" State or local taxes or surcharges for environmental protection will be an extra charge."

L. A credit of ten cents per tire is allowed against the fee imposed by this article for expenses incurred by the payer of the fee for accounting for and reporting the fees.

M. This section does not apply to a person whose retail sales of new motor vehicle tires are not in the ordinary course of business.

N. For purposes of this section, " retail seller of new motor vehicle tires" and " wholesale seller of new motor vehicle tires" includes those persons who sell or lease new motor vehicles to others in the ordinary course of business.