Information Release

XT 2001-06  - Tire Fee Rate Increase Information for All Tire Fee Registrants  - July 26, 2001

The 123rd General Assembly increased the fee on the sale of replacement tires from $.50 cents to $1.00 per tire. This fee increase is effective September 5, 2001. All tires sold on or after September 5, 2001, should reflect the new rate.

The returns sent by our department in December 2000 indicated a tax rate of $.50 per tire. Enclosed are revised returns reflecting the new rate for the periods September 1, 2001, through December 31, 2001. Please destroy the returns with the old rate.

For the month of September, report any tires sold between September 1st and September 4th at the $.50 cent rate and any tires sold after September 4th at the $1.00 rate. It is not necessary to separate these sales on your return. Combine the number of tires sold and report this on line 1 of your return, combine the tax liability and report this on line 2 of your return.

In late 2001 we will be mailing returns for calendar year 2002.

If you have any questions, please contact the Excise Tax and Assessment Section at (855) 466-3921.