Alert The Tax Division offices will be closed on Friday, November 24 for a mandatory furlough day and will reopen Monday, November 27. Revenue Online will remain available to conduct business. Should you need assistance during this time, please call the mainline of the respective office location: Anchorage at 907. 269-6620 or Juneau at 907.465.2320, and leave a message.


Tire Fees

Frequently Asked Questions





Sections:
  • Tire Fee FAQ



  • Tire Fee FAQ

    What types of tires are subject to the $2.50 tire fee?
    What types of tires are subject to the $5.00 tire fee?
    Are used tires subject to the fee?
    Are used tires subject to the $5.00 on studded tires?
    Are all metal tire studs subject to the $5.00 fee?
    Are tires for ATVs subject to the fee?
    Are charitable organizations and non-profit agencies exempt from the fee?
    Who pays the fee and how is it remitted?
    Who is eligible to claim the timely filing credit?
    How is the timely filing credit calculated?
    What are the penalties if a tire fee return is not filed or filed late?
    Where do I send the return and my payment?
    Can I remit the tire fees electronically?
    How do I get additional copies of the tax return form and the certificate of use?
    When is the return due?


  • What types of tires are subject to the $2.50 tire fee?

  • New tires for motor vehicles designed for highway use are subject to the $2.50 fee, including, but not limited to new tires for motorcycles, trailers, recreational vehicles, passenger cars and trucks. New tires for off-road vehicles, such as ATVs, are not subject to the fee.

  • What types of tires are subject to the $5.00 tire fee?

  • The $5.00 fee is imposed on the retail sale of tires for motor vehicles designed for use on a highway that are studded with metal studs or spikes weighing more than 1.1 grams. This portion of the fee is in addition to the $2.50 fee on new tires.

    The $5.00 fee also applies to the service of installing of metal studs or spikes weighing more than 1.1 grams for a fee.

    The retail sale of a NEW tire with studs (weighing more than 1.1 grams) is subject to $7.50 in tire fees: $2.50 for the new tire and $5.00 for the studs that are installed in that tire.

  • Are used tires subject to the fee?

  • The sale of a used tire is not subject to the $2.50 tire fee.

  • Are used tires subject to the $5.00 on studded tires?

  • A used tire in which new metal studs or spikes weighing more than 1.1 grams each are installed (for a fee) is subject to the $5.00 “studded tire” fee.

    A used tire with used metal studs or spikes weighing more than 1.1 grams each is not subject to the fee.

  • Are all metal tire studs subject to the $5.00 fee?

  • No. AS 43.98.025 states that the fee applies to metal studs or spikes weighing more than 1.1 grams each.

  • Are tires for ATVs subject to the fee?

  • No. The fee applies only to the sales of new tires for motor vehicles designed for highway use.

  • Are charitable organizations and non-profit agencies exempt from the fee?

  • Charitable organizations and non-profit agencies are not exempt from the fee. Vehicles owned by charitable or non-profit organizations, Alaska Native Tribal Village Councils, and church/religious organizations may qualify for reduced registration fees and “exempt” license plates. However, tire sales to 501(c) organizations are taxable under AS 43.98.025.

    Tire sales that are exempt from the fee include sales to federal, state, and local government agencies for official use and sales to tire resellers.

  • Who pays the fee and how is it remitted?

  • The fee is imposed on the retail sale of new tires in the state. The tire seller is required to report the fee as a separate item on the sales receipt or invoice. Tire sellers are responsible for collecting the fees from tire purchasers and remitting those fees to the Department.

  • Who is eligible to claim the timely filing credit?

  • Taxpayer who submit tire fee return not later than the last day of the calendar month following the last day of the calendar quarter of the sale or installation are eligible to claim the timely filing credit. The timely credit is not allowed if a return is not filed or if a return is filed late.

  • How is the timely filing credit calculated?

  • The timely filing credit is 5% of the total amount collected, not to exceed $600 a quarter. The “total amount collected” includes both portions of the tire fee.

  • What are the penalties if a tire fee return is not filed or filed late?

  • Penalties for failure to file or failure to pay accrue at 5% per each 30-day period, up to the maximum of 25% of the tax due.

    Interest is calculated in accordance with AS 43.05.225, currently at the rate of 11% and is compounded on the last day of each calendar quarter. Interest continues to accrue until paid in full.

    In addition, the timely filing credit is not allowed if a return is not filed or if a return is filed late.

  • Where do I send the return and my payment?

  • Mail your tire fees quarterly return to:
    Alaska Department of Revenue
    Tax Division
    PO Box 110420
    Juneau AK 99811-0420

  • Can I remit the tire fees electronically?

  • Yes. Please use our free online electronic funds transfer service, also known as Revenue Online. Go to https://online-tax.alaska.gov and follow the online instructions.

    If the amount due is $100,000 or more, you must pay by wire transfer or electronic funds transfer in accordance with 15 AAC 05.310.

  • How do I get additional copies of the tax return form and the certificate of use?

  • Visit the Tax Division's Web Site:http://www.tax.alaska.gov
    Call the Tax Division in Anchorage: 907.269.6620
    or, Write to: State of Alaska
    Department of Revenue
    Tax Division
    550 W 7th Ave Ste 500
    Anchorage, AK 99501-3555


  • When is the return due?

  • The tire fee quarterly return must be postmarked on of before the last day of the calendar month following the last day of the calendar quarter of the sale of installation:

    QuarterTire Fee Return Due Date
    1st Qtr is January 1-March 31April 30
    2nd Qtr is April 1–June 30July 31
    3rd Qtr is July 1–September 30October 31
    4th Qtr is October 1-December 31January 31




    The above questions and answers were provided in an attempt to address the most commonly asked questions regarding tire fees. If you have further questions, please contact the Anchorage office at 907.269.6620 or Tax_Tire@revenue.state.ak.us.