44-1302

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

(Rpld. 1/1/18)

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.