Scrap Tire Disposal Tax
Scrap tire disposal tax is collected on the retail sale of new tires. Purchases of new tires from outside North Carolina for storage, use or consumption in North Carolina or for placement in this State on vehicles offered for sale, lease or rental are subject to the scrap tire disposal tax. The exemptions to the tax are set forth in G.S. 105-187.18. The scrap tire disposal tax rate is 2% on tires with a bead diameter of less than 20 inches. The tax rate is 1% on tires with a bead diameter of 20 inches or more. The bead diameter is the diameter of the hole in the center of the tire or the diameter of the rim.
The scrap tire disposal tax is to be reported separately to the Department of Revenue on the Scrap Tire Disposal Tax Return, Form E-500G. Information about the filing frequency and due date requirements can be found in Filing Frequency and Due Dates. For additional information on the scrap tire disposal tax, refer to Sales and Use Tax Technical Bulletin 29-2.