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Tire Fees
2016 Annual Report


Tire Fees Reports
End Year



AS 43.98.025

Description

Alaska imposes a tire fee on all new tires sold in Alaska for motor vehicles designed for use on a highway. An additional tire fee is imposed on the sale of tires with metal studs weighing more than 1.1 grams each (heavy studs). The additional tire fee also applies to the installation of heavy studs in new or used tires.

The Department of Revenue’s Tax Division collects tire fees primarily from businesses that sell new tires.

Rate

A $2.50 tire fee applies to each new tire, and an additional $5 fee applies to each studded tire or stud installation on a tire. Therefore, the total fee for new studded tires is $7.50 per tire.

Returns

Taxpayers are required to file returns and remit fees quarterly. Returns and payment are due the last day of the calendar month following the last day of the calendar quarter of the sale or installation.

Taxpayers may retain 5% of the amount collected, limited to a maximum of $600 per quarter, to cover expenses associated with collecting and remitting fees.

Exemptions

The following tires and services are exempt if the purchaser provides the tire seller with a certificate of use:

  • Tires and services sold to federal, state or local government agencies for official use.
  • Tires for resale.

The $2.50 tire fee does not apply to used tires and certain replacements of defective tires.

Disposition of Revenue

The division deposits all revenue from the tire fee into the General Fund.

History

2003 – The Alaska Legislature enacted the tire fee, effective Sept. 26, 2003.

2015 – The Legislature passed Senate Bill 33, which clarified the return filing date as the last day of the calendar month following the last day of the calendar quarter of the sale or installation. In addition, the 5% cap on the amount retained to cover expenses associated with collecting and remitting the fees was reduced from $900 a quarter to $600 a quarter. SB 33 became effective May 12, 2015.



Click here for data with additional years.

  Collections Summary

Fiscal Year

2016 2015 2014 2013

   New Tires (Non-Studded)

$1,089,696 $1,133,124 $993,281 $1,008,990

   Studded Tires and Stud Installations

379,326 373,883 324,771 373,455

   Penalties, Interest and Refunds

360 8,798 3,477 18,435

   Total Tax

$1,469,382

$1,515,805

$1,321,529

$1,400,879


  Filing Information

Fiscal Year

2016 2015 2014 2013

   Number of Returns

338 297 273 292

   Number of Taxpayers

76 72 75 81





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