SUBJECT: New or Replacement Tires on Vehicles

REFERENCES: IC 13-11-2-231; IC 13-11-2-245; IC 13-20-13-7

DISCLAIMER: Information bulletins are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on either the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein.

SUMMARY OF CHANGES

Only nonsubstantive, technical changes have been made to this bulletin. It has been primarily changed to reflect updated formatting.

INTRODUCTION

The purpose of this bulletin is to outline the procedures to be followed in collecting and remitting the tire fee. The fee does not apply to the sale of used or retreaded tires.

IMPOSITION OF FEE

There is a twenty-five cent ($0.25) fee imposed on each new tire sold in Indiana for use on a motor vehicle, and types of equipment, machinery, implements or other devices used in transportation, manufacturing, agriculture, construction or mining. The fee includes tires mounted on farm tractors, implements of husbandry and semi-trailers. The fee is also imposed on tires for garden tractors with 25 horsepower or more. "New tire" means a tire that has never been mounted on the wheel of a vehicle.

The fee is also imposed on each new tire mounted on a vehicle at the time the vehicle is sold and any spare tire that is included with the vehicle. Purchases by governmental units and nonprofit organizations are not exempt from the tire fee. The fee imposed shall be collected by the person selling the new tire to the ultimate consumer of the tire or vehicle.

If an out-of-state seller is registered to collect and remit Indiana sales tax, then the out-of-state seller is required to collect and remit the tire fee.

EXEMPTIONS

The fee is not imposed on tires used on lawn mowers and garden tractors that are propelled by motors with less than 25 horsepower. The fee is not imposed on new tires mounted on a non self-propelled vehicle for personal use such as a boat trailer or a camper trailer. Tires purchased for resale without being mounted on a motor vehicle are exempt from the tire fee.

REMITTANCE OF THE FEE

The tire fee is required to be remitted at the same time as the sales tax. If a seller is required to file by the 20th of the month through electronic funds transfer, the seller is also required to remit the tire fee by the 20th of the month through electronic funds transfer. The tire fee is to be remitted using Form TF-103 (Tire Fee Vouchers). This form is required to be filed with the remittance of the tire fee and must be filed even if no remittance is due.

The seller that is remitting the tire fee is entitled to retain 1% of the amount collected as compensation for filing and remitting the fee.

A seller should register to collect the fee online through INBiz, which is Indiana's online registration portal, by visiting inbiz.in.gov. The tire fee can be remitted and returns can be filed by using the department's online e-services portal, called the Indiana Taxpayer Information Management Engine (INTIME), which can be accessed at intime.dor.in.gov.

Revenue from the tire fee is deposited in the waste tire management fund. All money deposited in the fund may be used by the Indiana Department of Environmental Management for waste reduction, recycling, removal, or remediation projects.

If you have any questions concerning this bulletin, please contact the Tax Policy Division at taxpolicy@dor.in.gov.

_________________________

Robert J. Grennes, Jr.

Commissioner