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FAQ Categories / Tax: Scrap Tire Environmental Fee

No, per ADEM.

Note: Ambulances are not considered ambulatory equipment for scrap tire environment fee purposes.

No, schools are not exempt.

No, the fee is not due on tires that are exported to another state.

No, you are not selling the tires to the consumer. You are only providing a service for the tire dealer or the trucking company. The fee would be due from the tire dealer/trucking company when the tires are sold.


Yes, the dealership in this case would be the consumer and would be responsible for payment of the scrap tire fee.

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.)

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.

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.

Yes, the auction is considered the consumer and the fee would apply.

The lease company is considered the consumer and the fee would apply.

Yes, the dealership would collect the fee from the consumer and then remit the fee to the State of Alabama.

No, if you list it in the sales tax area, then you have to remit sales tax on the fee.

No, as long as the tire being recapped belongs to the consumer and the consumer does not receive a replacement tire.

The fee is $1 per tire, so if a person buys 4 tires, then the total fee due is $4.

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 fees collected.

No, there is no provision for the fee to increase.

Yes, the current disposal fee is what you charge the customer. The new $1 per tire fee will be remitted to the State.

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.

Yes, this fee applies to the sale of the replacement tire.

Visit myalabamataxes.alabama.gov. Complete the application and return it to this office for processing. You will then be assigned an account number and mailed the forms for remitting the fee monthly. There is no application 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.

No, the Department of Revenue  is only responsible for collecting the environmental fee. According to the Alabama Department of Environmental Management (ADEM), nothing has changed regarding the disposal of the scrap tires.

No. All governmental organizations, whether federal, state, or local governing bodies, are exempt from payment of this fee.

No, this fee is only on the sale of tires.