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 in addition to all other taxes.
For a business or person who is not registered with the Department and is required to collect and/or remit the scrap tire disposal tax, register online using the online business registration portal. 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.
Additional Information for Scrap Tire Disposal Tax
- Sales and Use Tax Technical Bulletin Section 29-2 (2009-2018 legislative changes not included)
| Form | Description |
|---|---|
| E-500G | Scrap Tire Disposal Tax Return Form |
| Form E-500G Instructions | Instructions - Form E-500G |
| NC-19 | Claim for Refund of Taxes Form (Only for Scrap Tire Disposal Tax and Dry-Cleaning Solvent Tax) |