Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2021
California Tire Fee Annotations
When a motor car dealer puts a vehicle in its resale inventory to taxable use as a demonstrator vehicle, the dealer must self-report the tire fee on the new tires mounted on the vehicle and remit the fee to the Board if the dealer cannot establish that the fee on these tires has already been paid. Likewise, if the dealer mounts the spare tire on the vehicle while it is still in use as a demonstrator vehicle, the dealer must also self-report and remit to the Board the fee on the spare tire at the time it is mounted on the vehicle. However, if the spare tire is still new, i.e., it has never been mounted on a vehicle, at the time the dealer sells the demonstrator vehicle to the end user, the dealer shall collect the tire fee on the spare tire from the end user at the time of sale and remit it to the Board. In addition, if the dealer mounts new tires on a demonstrator vehicle when the dealer sells the vehicle to the end user, the dealer must collect the fee on the new tires from the end user and remit the fee to the Board. 8/22/07.