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Environmental Taxes FAQ

— Scrap Tire Environmental Fee

Does this fee apply to wholesale transactions?
No, the fee applies at the point of sale from the retailer to the consumer.

Does this fee apply to bicycle tires?
No, effective August 4, 2004, this fee does not apply to tires used on devices moved exclusively by human power.

Does this fee apply if the customer takes the old tire with him?
Yes, the fee is on the sale of a tire.

Does the fee apply to multiple retreads on the same tire?
If the same tire is retread multiple times by the same consumer, then the fee only applies to the first time the retread tire is purchased; however, if the retread tire is processed multiple times and sold to different consumers each time, then the fee would apply each time the retread is resold.

Does this fee apply to farming and logging equipment?

Does this fee apply to the tires on new vehicles?
No, this fee is only on the sale of tires.

Does this fee apply to tires purchased by governmental organizations?
No. All governmental organizations, whether federal, state, or local governing bodies, are exempt from payment of this fee.

Will the state of Alabama be responsible for disposal of the scrap tires?
No, the Department of Revenue  is only responsible for collecting the environmental fee. According to the Alabama Department of Environmental Management (ADEM), nothing has changed regarding the disposal of the scrap tires.

Do I charge sales tax on this fee?
You should not charge sales tax if the fee is listed separately on the customer’s receipt; however, if the fee is included in the price of the tire, then sales tax would apply.

What is the procedure to get set up to remit this fee?
Visit https://myalabamataxes.alabama.gov/. Complete the application and return it to this office for processing. You will then be assigned an account number and mailed the forms for remitting the fee monthly. There is no application fee.

Does this fee apply even if we do not accept the old tires?
Yes, this fee applies to the sale of the replacement tire.

Do I still have to pay so much per ton to have the old tires removed from my location and charge the disposal fee?
Yes, because you will still be responsible for disposal of the tires. The State is not responsible for picking up the used tires. Nothing has changed regarding the disposal of the tires.

Will I charge the current disposal fee and the new $1 per tire fee to the customer?
Yes, the current disposal fee is what you charge the customer. The new $1 per tire fee will be remitted to the State.

Can the department increase the fee?
No, there is no provision for the fee to increase.

How will this fee be used?
This fee will be used to clean up the illegal dump sites for tires. This fee is earmarked for the disposal and recycling of scrap tires. ADEM’s Solid Waste Management Branch is responsible for distribution of the fees collected.

Is this fee $1 per tire or $1 per customer?
The fee is $1 per tire, so if a person buys 4 tires, then the total fee due is $4.

Does this $1 per tire fee apply on recapped tires where the business recapping the tire only charges for the rubber used to recap?
No, as long as the tire being recapped belongs to the consumer and the consumer does not receive a replacement tire.

If the fee is charged separately, can we list this fee in the sales tax area of the invoice?
No, if you list it in the sales tax area, then you have to remit sales tax on the fee.

If a car dealership sells replacement tires to the consumer, does the dealership have to collect the fee?
Yes, the dealership would collect the fee from the consumer and then remit the fee to the State of Alabama.

If replacement tires are sold to lease companies, is the fee applicable?
The lease company is considered the consumer and the fee would apply.

If replacement tires are sold to car auctions, is the fee applicable?
Yes, the auction is considered the consumer and the fee would apply.

If the tires are under warranty, would the fee still apply to the replacement tire(s)?
Yes, the fee would be due on the replacement tires, unless the tire is replaced due to a manufacturer’s defect. If there is a charge for the tire, the fee applies.

As a car dealer who is not a tire dealer but contracts with a tire dealer to replace tires on vehicles, does this fee apply?
The car dealer (as the consumer) would remit the fee to the contracted tire dealer. The tire dealer should invoice the car dealer showing the scrap tire fee charged and then the car dealer can recoup the price of the tire plus the fee from the consumer.

I purchase tires to install on travel trailers, am I required to remit the fee or do I pay the fee to my supplier?
You should remit the fee to your tire supplier. You are the consumer of the tire because you are placing the tire on the trailer.  (You are selling the trailer, not the tire.)

If a dealership removes a tire from its inventory to recondition a used car that will later be sold to a consumer, is the fee applicable?
Yes, the dealership in this case would be the consumer and would be responsible for payment of the scrap tire fee.

If I pick up tires from tire dealers and/or trucking companies that I will retread and deliver them back to the company, am I responsible for collecting the $1 per tire fee?
No, you are not selling the tires to the consumer. You are only providing a service for the tire dealer or the trucking company. The fee would be due from the tire dealer/trucking company when the tires are sold.

Is the fee due on tires that are exported to another state?
No, the fee is not due on tires that are exported to another state.

Are private schools exempt?
No, schools are not exempt.

Does this fee apply to ambulatory equipment?
No, per ADEM.

Note: Ambulances are not considered ambulatory equipment for scrap tire environment fee purposes.

— Storage Tank Trust Fund

What is the Alabama Underground and Aboveground Storage Tank Trust Fund Act?
This Act established a trust fund to pay for the investigative and cleanup costs resulting from leaks or spills from motor fuel underground and aboveground storage tanks. The Department of Revenue collects the charge. The Alabama Department of Environmental Management (ADEM) handles all claims associated with the fund.

Who is responsible for remitting this charge to the Department of Revenue?
The charge is collected and remitted by operators of bulk facilities from which a first withdrawal of motor fuels from bulk is made. When fuel is withdrawn from bulk outside this state, the owner of the fuel when it is delivered into Alabama is responsible for collecting and remitting the charge.

The monthly return and payment are due by the 20th of each month.

What is the fee rate of this charge?
The Trust Fund Management Board will determine the fee on an annual basis and the fee shall not be greater than $0.02 per gallon nor less than $0.003 per gallon. As of October 1, 2004, the fee was set at $0.01 per gallon. Effective January 1, 2010, the fee increased to $0.0125 per gallon. Effective April 1, 2012, the fee decreased to $0.01 per gallon. Section 22-35-3 (19) provides that the charge not be assessed on motor fuel withdrawn from bulk when the ultimate destination is outside Alabama. Section 22-35-5 (b) provides that the charge not be imposed on the withdrawal from bulk of fuel oil to be used in the generation of electricity.

How do I become registered to pay the charge?
Visit https://myalabamataxes.alabama.gov/.

— Hazardous Waste

What are the fees on hazardous waste disposed of in Alabama? 
State fees on hazardous waste disposed of in Alabama are based on the toxicity of the waste received for disposal.  The fee is paid to the Department of Revenue by filing a monthly report that is due by the 30th of the month for the previous month’s activity.  The fees for an Alabama facility are as follows:

  • $5.50 per ton on hazardous waste identified or listed under Section 3001 of the Resource Conservation and Recovery Act of 1976 as amended (RCRA), and on PCB wastes. 
  • $5.50 per ton on all other waste not referenced above.
  • An additional $1 per ton is imposed on all waste received for disposal.  Additional fees are also collected by the county in which the hazardous waste commercial site is located.

— Solid Waste Fee

Who is required to file and pay solid waste disposal  fees?
All solid waste disposal facilities which have been issued a permit by the Alabama Department of Environmental Management (ADEM) are required to file and pay solid waste disposal fees to the Alabama Department of Revenue (ADOR).

As a private solid waste disposal facility with a $1,000-per-calendar-year fee payment limitation, am I required to file a report each quarter?
Yes, private solid waste disposal facilities are required to file the quarterly report each quarter, even if the $1,000 fee payment limitation has been met.

When is the solid waste fee report and payment due to ADOR?
The report and payment are due each quarter no later than the 20th day of January (for Oct., Nov., and Dec. activity), April (for Jan., Feb., and March activity), July (for April, May, and June activity), and October (for July, Aug., and Sep. activity).

What are the solid waste disposal fee rates?
The rates are as follows:

  • $1/ton for:
    • Waste received for disposal in a municipal solid waste landfill
    • Regulated solid waste that may be approved by ADEM as alternate cover material in landfills
    • Regulated solid waste received from out of state for disposal at permitted public solid waste facilities
  • $1/ton or $0.25/cubic yard for:
    • Waste received for disposal in public industrial landfills, construction and demolition landfills, non-municipal solid waste incinerators, or composting facilities, which was not generated by the permittee
    • Regulated solid waste that may be approved by ADEM as alternate cover materials in landfills
    • Regulated solid waste received from out of state for disposal at permitted public solid waste facilities
  • $0.25/cubic yard for:
    • Waste generated for disposal in a private solid waste management facility