Scrap Tire Disposal Tax

Scrap tire disposal tax is due on the retail sale and purchase of new tires. The tax funds, in part, the disposal of tires and cleanup of inactive hazardous waste sites.   

What Tax is Due?

The scrap tire disposal tax applies to the sales price or purchase price of the tire. The 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 scrap tire disposal tax is in addition to all other taxes.  

The tax applies to all tires unless specifically exempted by statute. Tires subject to the tax include tires for the following:

  • Motor vehicle.
  • Aircraft.
  • Construction equipment.
  • Maintenance and industrial equipment.
  • Agricultural equipment.
  • Farm tractors.
  • Special mobile equipment.
  • Vehicles designed for non-highway work. 

Sales and purchases of the following tires are exempt from tax:

  • Bicycle tires (including ebikes) and other tires for vehicles propelled by human power.
  • Recapped tires.
  • Tires sold for placement on a newly manufactured vehicle.

The tax is reported on Form E-500G, Scrap Tire Disposal Tax Return.

How to Register?

A person who is not registered with the Department and is required to collect or remit the scrap tire disposal tax, may register online using the online business registration portal.

How Do I Find More Resources?

Forms

Tab/Accordion Items

To ensure you are able to view and fill out forms, please save forms to your computer and use the latest version of Adobe Acrobat Reader. Frequently Asked Questions about Forms.

FormDescription
E-500GScrap Tire Disposal Tax Return - Instructions
NC-19Claim for Refund of Taxes
NC-ACBusiness Address Correction
NC-BNOut-of-Business Notification

 

Related Content

Off