KRS 224.50-868: New tire fee -- Definitions for section -- Disposal of replaced tire --

Report to cabinet -- Retailer requirements.

(1) As used in this section:

(a) "Motor vehicle" means every vehicle intended primarily for use and operation

on the publ ic highways that is self -propelled, including a low -speed motor

vehicle as defined in KRS 186.010;

(b) "Semitrailer" means any vehicle:

1. Designed:

a. As temporary living quarters for recreation, camping, or travel; or

b. For carrying persons or property;

2. Designed for being drawn by a motor vehicle; and

3. Constructed that:

a. Some part of its weight; or

b. Some part of its load;

rests upon or is carried by another vehicle; and

(c) "Trailer" means any vehicle:

1. Designed:

a. As temporary living quarters for recreation, camping, or travel; or

b. For carrying persons or property;

2. Designed for being drawn by a motor vehicle; and

3. Constructed that:

a. No part of its weight; and

b. No part of its load;

rests upon or is carried by another vehicle.

(2) (a) 1. Prior to July 1, 2018, a person purchasing a new motor vehicle tire in

Kentucky shall pay to the retailer a one dollar ($1) fee at the time of the

purchase of that tire. The fee shall not be subject to the Kentucky sales

tax.

2. Beginning July 1, 2018, but prior to July 1, 2020, a fee is hereby

imposed upon a retailer at the rate of two dollars ($2) for each new

motor vehicle tire sold in Kentucky. The fee shall be subject to the

Kentucky sales tax.

3. Beginning July 1, 2020 , but prior to July 1, 2034, a fee is hereby

imposed upon a retailer at the rate of two dollars ($2) for each new

motor vehicle, trailer, or semitrailer tire sold in Kentucky. The fee shall

be subject to the Kentucky sales tax.

4. A retailer may pass the f ee imposed by this paragraph on to the

purchaser of the new tire.

(b) 1. A new tire is a tire that has never been placed on a motor vehicle, trailer,

or semitrailer wheel rim.

2. A new tire is not a tire placed on a motor vehicle, trailer, or semitrailer

prior to its original retail sale or a recapped tire.

(3) When a retailer sells a new motor vehicle tire in Kentucky to replace another tire,

the tire that is replaced becomes a waste tire subject to the waste tire program. The

retailer shall encourage the purchaser of the new tire to leave the waste tire with the

retailer or meet the following requirements:

(a) Dispose of the waste tire in accordance with KRS 224.50-856(1);

(b) Deliver the waste tire to a person registered in accordance with the waste tire

program; or

(c) Reuse the waste tire for its original intended purpose or an agricultural

purpose.

(4) (a) A retailer shall report to the Department of Revenue on or before the

twentieth day of each month the number of new motor vehicle tires sold

during t he preceding month and the number of waste tires received from

customers that month.

(b) The report shall be filed on forms and contain information as the Department

of Revenue may require.

(c) The retailer shall be allowed to retain an amount equal to five percent (5%) of

the fees due, provided the amount due is not delinquent at the time of

payment.

(5) A retailer shall:

(a) Accept from the purchaser of a new tire, if offered, for each new motor

vehicle tire sold, a waste tire of similar size and type; and

(b) Post notice at the place where retail sales are made that state law requires:

1. The retailer to accept, if offered, a waste tire for each new motor vehicle

tire sold and that a person purchasing a new motor vehicle tire to replace

another tire shall comply with subsection (3) of this section; and

2. The two dollar ($2) new tire fee is u sed by the state to oversee the

management of waste tires, including cleaning up abandoned waste tire

piles and preventing illegal dumping of waste tires.

(6) A retailer shall comply with the requirements of the recordkeeping system for waste

tires established by KRS 224.50-874.

(7) A retailer shall transfer waste tires only to a person who presents a letter from the

cabinet approving the registration issued under KRS 224.50-858 or a copy of a solid

waste disposal facility permit issued by the cabinet, unle ss the retailer is delivering

the waste tires to a destination outside Kentucky and the waste tires will remain in

the retailer's possession until they reach that destination.

(8) The cabinet shall, in conjunction with the Waste Tire Working Group, develop the

informational fact sheet to be made publicly available on the cabinet's website and

available in print upon request. The fact sheet shall identify ways to properly

dispose of the waste tire and present information on the problems caused by

improper waste tire disposal.