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Business Taxes Law Guide—Revision 2024
California Tire Fee
Public Resources Code
Division 30. Waste Management
Chapter 17. California Tire Recycling Act
Article 5. Financial Provisions
Section 42885
Text of Section Operative January 1, 2005 to December 31, 2033
42885. Disposal fee; seller reimbursement retention; California Tire Recycling Management Fund; reimbursement of department. (a) For purposes of this section, "California tire fee" means the fee imposed pursuant to this section.
(b) (1) A person who purchases a new tire, as defined in subdivision (g), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.
(2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 1½ percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c) The California Department of Tax and Fee Administration shall collect the California tire fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)) of Division 2 of the Revenue and Taxation Code. For purposes of this section, the reference in the Fee Collection Procedures Law to "feepayer" shall include a person required to pay the fee imposed by this section, which includes the retail seller. (d) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(e) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(f) In addition to the civil penalty that may be imposed pursuant to subdivision (e), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(g) For purposes of this section, "new tire" means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. "New tire" does not include retreaded, reused, or recycled tires.
(h) The California tire fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:
(1) A self-propelled wheelchair.
(2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the person's physical disability, is otherwise unable to move about as a pedestrian.
(i) This section shall remain in effect only until January 1, 2034, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2034, deletes or extends that date.
History—Stats. 2006, Ch. 77 (AB 1803), in effect July 18, 2006, renumbered former subdivision (b)(1)(A) as (b)(1), substituted "A" for "Every" in the former subdivision (b)(1)(A), and substituted "one dollar and seventy-five cents ($1.75)" for "one dollar ($1.00)" in the former subdivision (b)(1)(A); deleted subdivisions (b)(1)(B) and (b)(1)(C); substituted reference "subdivision (b)" for "subdivision (a)" in subdivision (d); substituted "A" for "Any" and "a" for "any" in subdivision (e); substituted "a" for "any" two times in subdivision (f); substituted "shall" for "may" "a" for "any" in, and substituted "A" for "Any" in paragraphs (1), (2), and (3) of subdivision (h). Stats. 2013, Ch. 401 (AB 8) in effect September 28, 2013, substituted "department" for "board" after "The" in subdivision (c); substituted "department" for "board" after "The" in subdivision (f); substituted "onroad" for "on-road" in subdivision (g); and substituted "January 1, 2024" for "January 1, 2015" twice in subdivision (i). Stats. 2022, Ch. 355 (AB 2836), substituted "2034" for "2024" throughout subdivision (i). Stats. 2024, Ch. 42 (SB 175), effective June 29, 2024, substituted "California Department of Tax and Fee Administration … the retail seller." for "department … deposited in the fund." after "The" in subdivision (c).
Text of Section Operative January 1, 2034
42885. Disposal fee; seller reimbursement retention; California Tire Recycling Management Fund; reimbursement of department. (a) For purposes of this section, "California tire fee" means the fee imposed pursuant to this section.
(b) (1) Every person who purchases a new tire, as defined in subdivision (g), shall pay a California tire fee of seventy-five cents ($0.75) per tire.
(2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 3 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c) The California Department of Tax and Fee Administration shall collect the California tire fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)) of Division 2 of the Revenue and Taxation Code. For purposes of this section, the reference in the Fee Collection Procedures Law to "feepayer" shall include a person required to pay the fee imposed by this section, which includes the retail seller. (d) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(e) Any person or business who knowingly, or with reckless disregard, makes any false statement or representation in any document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(f) In addition to the civil penalty that may be imposed pursuant to subdivision (e), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on any person who intentionally or negligently violates any permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(g) For purposes of this section, "new tire" means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. "New tire" does not include retreaded, reused, or recycled tires.
(h) The California tire fee may not be imposed on any tire sold with, or sold separately for use on, any of the following:
(1) Any self-propelled wheelchair.
(2) Any motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3) Any vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the person's physical disability, is otherwise unable to move about as a pedestrian.
(i) This section shall become operative on January 1, 2034.
History—Amended by Stats. 2024, Ch. 42 (SB 175), effective June 29, 2024, substituted "California Department of Tax and Fee Administration … the retail seller." for "department … deposited in the fund." after "The" in subdivision (c).