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?
No, effective August 4, 2004, this fee would not apply to tires used on devices moved exclusively by human power.

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.

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.

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.

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, unless the tire is replaced due to a manufacturer's defect.  If there is a charge for the tire, the fee applies.

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.

ARE BOARDS OF EDUCATION, JUNIOR COLLEGES, UNIVERSITIES, WATER BOARDS, AND PARK AND RECREATIONAL BOARDS EXEMPT FROM THIS FEE?
No, these organizations would have to pay the scrap tire fee. The only exemptions are sales to federal, state, and local governing bodies. In order to qualify for the exemption, the organization must be part of the governing body.

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