Tire Recycling Fee

Tire wholesalers or tire retailers who buy tires must register and pay a tire recycling fee of 80 cents on each new tire sold in Maryland. The tire recycling fee applies to the first sale of the tire in Maryland, excluding sales to tire wholesalers or an out-of-state retailer. If a retailer acquires tires from out of state, and the only sales which take place in Maryland are the sales to retail customers, the fee becomes payable when the retail sales are made. See Applicable Sales.

The tire recycling fee is imposed on those who sell tires rather than on those who purchase them, so it need not be passed on to a retail customer as a separate charge or tax. If you choose to show the fee as a separate charge to the retail customer, be sure to exclude it from the amount subject to the sales and use tax.