The State of Arkansas will repeal its waste tire fee and impose a new rim removal fee effective January 1, 2018. The waste tire fee was originally imposed on the retail sale of new tires at a rate of $2.00 per tire. The recently enacted legislation repeals that fee and imposes a new fee on the service of removing a tire from a vehicle’s rim that is subsequently replaced with a tire sold by any tire retailer. If the tire removed is being replaced with a new tire, a $3.00 fee will apply. Conversely, if the tire removed is being replaced with a used tire, a reduced $1.00 fee will apply.
To review the revised legislation in its entirety, please click here.
About the Author
Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.More Content by Erik Wallin