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Tire Fees

Frequently Asked Questions





Sections:
  • General Questions

  • Returns and Payments



  • General Questions

    Who is liable for the tire fee?
    What are the tire fee rates?
    Are all tires subject to the fee?
    Are charitable organizations and non-profit agencies exempt from the fee?
    Are government agencies exempt from the fee?
    I am selling tires to another tire seller. Do I need to collect the fee?
    Where do I get the certificate of use form?


  • Who is liable for the tire fee?

  • Tire sellers are liable for the tire fee on the retail sale of new tires in the state. Tire sellers are responsible for collecting the fees from the purchasers and remitting the fees to the Tax Division.

  • What are the tire fee rates?

  • New tires are subject to a fee of $2.50 per tire. Studded tires are subject to an additional fee of $5.00 per tire. A $5.00 fee applies to the service of installing metal studs or spikes weighing more than 1.1 grams.

  • Are all tires subject to the fee?

  • No. Only new tires for motor vehicles designed for highway use are subject to the fee. This includes, but is 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. Tires for equipment are also not subject to the fee.

    Used tires are not subject to the fee.

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

  • No, charitable organizations and non-profit agencies are not exempt from the fee. Tire sales to charitable organizations and non-profit agencies, Alaska Native Tribal Village Councils, and church/religious organizations are taxable.

  • Are government agencies exempt from the fee?

  • Yes, tire sales to federal, state, and local government agencies for official use are exempt from the fee. The tire seller must have a completed certificate of use prior to selling the tires without the fee.

  • I am selling tires to another tire seller. Do I need to collect the fee?

  • No. You can sell the tires without collecting the fee if the reseller provides you with a completed certificate of use. The reseller will need to collect and remit the fee.

  • Where do I get the certificate of use form?

  • The form can be found here.

    Returns and Payments

    Who must file a return?
    When is the return due?
    What if the due date is on a weekend or holiday?
    I did not have any sales this month. Do I still need to file a return?
    How do I file my return?
    What happens if I do not file my return by the due date?
    What is the timely filing credit?
    When is the payment due?
    How can I make a tax payment?
    What happens if I do not submit my payment by the due date?
    Will I be charged interest?


  • Who must file a return?

  • Any person selling new tires at retail that has not already paid the tire fee must file a return.

  • When is the return due?

  • Returns are filed quarterly. The return is due on the last day of the month following the calendar quarter in which tires were sold in the state. For example, the return for the quarter ending March 31 is due April 30.

  • What if the due date is on a weekend or holiday?

  • If the due date falls on a weekend or holiday, the return is due the next business day. A holiday means an Alaska state holiday or a bank holiday observed by the Federal Reserve System. Holidays include Seward’s Day in March and Alaska Day in October but do not include other states’ holidays such as Emancipation Day.

  • I did not have any sales this month. Do I still need to file a return?

  • No, you do not have to file a return. However, the Tax Division encourages you to file a return so we know you did not have any sales.

  • How do I file my return?

  • Effective July 1, 2017, all returns must be filed electronically using Revenue Online. If you are unable to file a return electronically, please contact the Tax Division at 907.269.6620.

  • What happens if I do not file my return by the due date?

  • Returns that are not filed by the due date are subject to a failure to file penalty of 5% of the unpaid fee for each 30 day period or portion of a period the return is late, up to a maximum of 25%.

  • What is the timely filing credit?

  • Anyone who submits the tire fee return and pays the full amount due by the due date may claim a timely payment credit. The credit is 5% of the total tire fees collected or $600, whichever is less.

  • When is the payment due?

  • The payment has the same due date as the tax return. The weekend and holiday rule also applies to payments.

  • How can I make a tax payment?

  • Payments can be made by Automated Clearing House (ACH) debit payments using Revenue Online . Payments can also be made by wire transfer, check, or cash.

    Vouchers to include with your payment are available in Revenue Online and include all necessary instructions.

    The Department of Revenue cannot accept ACH credit or credit card payments.

    Please note that if your total payment exceeds $100,000 you are required to pay electronically or by wire transfer.

  • What happens if I do not submit my payment by the due date?

  • If the full amount is not paid when due, a failure to pay penalty of 5% of the unpaid fee may be assessed for each 30 day period or portion of the period the payment is late, up to a maximum of 25%. If during any period, or portion of a period, both the failure to file and failure to pay penalties are applicable, only the failure to file penalty is imposed.

  • Will I be charged interest?

  • Under Alaska Statute 43.05.225, interest will be assessed on any unpaid or delinquent fees. Interest is compounded quarterly at the applicable rate each quarter. See here for the current interest rate.



    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 dor.tax.tire@alaska.gov.