17 NCAC 07B .1907          SCRAP TIRE DISPOSAL TAX

(a)  The taxable event for tires that are purchased for the purpose of lease or rental occurs at the time the tires are purchased and the scrap tire tax is due at that time.  The receipts from the lease or rental of tires are not subject to the scrap tire tax but they are subject to the sales or use tax.  The scrap tire tax shall be computed on the selling price of the tire including the federal excise tax but excluding the sales tax.

(b)  Purchases of new tires from outside North Carolina for storage, use or consumption in North Carolina or to be placed on a vehicle offered for sale, lease or rental are subject to tax at the rate established in G.S. 105‑187.16(b).

(c)  The scrap tire disposal tax is not to be reported on a tire vendor's sales and use tax report but it is to be reported on the Scrap Tire Disposal Tax Report, Form E‑500G.  Taxpayers who are making sales or purchases of tires that are subject to the tax in accordance with the above information must register for this purpose.


History Note:        Authority G.S. 105‑187.16; 105‑187.17; 105‑262; 105‑264;

Eff. October 1, 1991;

Amended Eff. October 1, 1993; June 1, 1992.