If the $2.00 scrap tire fee was paid on the purchase of a tire at retail, should the scrap tire fee be paid a second time when the tire is resold?
A. The purchase of a tire for resale is considered a wholesale sale, which is not subject to the scrap tire fee. In those situations where a service provider has purchased tires at retail and paid the fee, the scrap tire should not be charged to the consumer of such services. However if a motor vehicle dealer, motor vehicle serviceperson, auto body repair shop, etc. purchases tires at retail or wholesale and did not pay the scrap tire fee, they must register as a scrap tire retailer. In addition they must pay the $2.00 scrap tire fee on tires that are installed on motor vehicles as part of the sale of the automobile or the service of such automobile. They are permitted to list the scrap tire fee as a separate item on the invoice.
