Are government agencies (federal, state, and local) exempt from the fee?
A. The scrap tire fee is assessed against the retailer on the sales of retail tires and not the purchaser. However, the retailer may increase the cost of the tire and separately report the scrap tire fee on the retail invoice. In addition, by statute, sales to government agencies and businesses that are required to obtain a Delaware business license are deemed to be wholesale sales and wholesale sales are not subject to the assessment of the scrap tire fee. However, the business is responsible for having the appropriate license and properly reporting the sale as either wholesale or retail. Accordingly, all retail sales of tires are subject to the $2 fee, irrespective of who is the customer.
