For many years, a Federal Excise Tax was levied on all vehicular tires sold in America. It was based on the amount of rubber contained in a given tire; big tires bigger tax. Several times while buying tires, I argued with the seller that it was WRONG to add the excise tax to the tire price, then tax those combined two for sales tax. They claimed the excise tax consisted of rubber, and was therefore a part of the product. What absolute rubbish! Sales taxes are imposed on product sold, services performed (and taxes) are NOT PRODUCT! I think the courts were driven nuts by this imponderable, and finally the Feds relented some years ago, dropping the excise tax. Whaddaya think? Frank
According to this information the excise tax is not levied on the amount of rubber in a given tire but on the type of tire. "A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use." https://taxmap.irs.gov/taxmap/pubs/p510-037.htm
The tire tax (now) is to cover the cost of road repairs. https://www.federalregister.gov/doc...rucks-and-tires-definition-of-highway-vehicle History of tire tax https://www.policyarchive.org/handle/10207/957 Check your state law on when the tax is added to the bill--some states allow the tax on tax, some do not.
Thanks @Frank Sanoica I think Florida has a $1 new tire fee/tax. It is only charges for NEW tires. Not sure what the revenue is allocated towards.
@Thomas Stearn The link may be outdated, for it specifies that the tax applies to Load Rating above 3500 lbs. Almost no domestic vehicle of the car or pickup truck class has any tires with load rating exceeding 3500#. Thus the tax would apply to big truck tires. Or this may reflect the "change" made to the law, when it was announced it was being repealed, however. All that aside, the question remains: is an excise-tax a product, liable for sales tax? Frank
@Rene Descartes " The federal excise tax imposed on tires is now scheduled to expire on October 1, 2011. " Article was written before above date. There is today no excise tax on passenger vehicle tires. Frank
@Bess Barber I think, but am not sure, EPA got some gobbledy-gook passed requiring a "fee" when tires are discarded; it may be relegated to the States. I buy my tires outright, and carry them off. They cannot thus charge me a "thrown-away" tire fee. They've tried, but guess what? Frank
This is a fee only on NEW tires. I have no idea if they also charge for disposing old ones. I never paid attention to that.
That was from the link I stated was history of the tire tax, yes? If you look at the federal register link I put on that post, you will see the updated version of it.
@Rene Descartes I was about to ask about this, but then realized too late what you meant: the issue of sales tax on excise tax. I do not know how to delete a started forum. Sorry! Frank