Tire Fee Collection FAQs

  • Why did EPD change the way it collects tire fees?

    In 2023 the Georgia General Assembly amended the state law, O.C.G.A. § 12-8-40.1(h), that describes how tire fees are collected in Georgia. The primary impact of that change is to move the point of collection from retailers to distributors. The law includes a new definition of the term distributor

  • When did this law go into effect?

    The 2023 changes to the law go into effect on July 1, 2023.  

  • What date is used to determine the "July 1st" date when beginning collection of the new tire fee? Is it the invoice date or the shipment date?

    The fee collection, reporting, and payment responsibility shifted to the distributor on July 1, 2023 and must must be collected at the distributor's point of sale to tire retailers. When you charge and collect the fee is ultimately a business decision based on when you make the sale.  

  • These changes are complicated and there are a lot of different business relationships between tire manufacturers, distributors, and retailers. Is EPD going to update its FAQs?

    Yes!  EPD understands that this is a big change and that we and industry will have to learn together how best to implement these requirements.  Please continue to check back here for updates.

  • Did EPD make rules to help further explain and implement the change to the statute?

    Yes, EPD updated the Rules for Scrap and Tire management to eb consistent with state law, O.C.G.A. § 12-8-40.1(h). The most recent rule language can be found on the Secretary of State's website here: Rule 391-3-4-.19. Scrap and Used Tire Management

  • Who is responsible for collecting the fee?

    The 2023 changes to the law include a definition of the term distributor for purposes of fee collection.  Essentially, the first time a tire is sold in Georgia to a retailer or to customer using those tires, the entity making that sale is a distributor and, thus, responsible for collecting the fee. 

  • What if I’m an out of state distributor who sells tires to Georgia retailers? Do I have to collect the fee when I sell those tires?

    Yes.  You are making the first sale to a retailer in Georgia of those tires, so you are considered to be a distributor under Georgia state law.

  • What if I’m a manufacturer, retailer, or distributor who sells tires directly to Georgia residents or entities by internet? Do I have to collect the fee when I sell those tires?

    Yes.  You are making the first sale in Georgia to a customer using those tires, so you are considered to be a distributor under Georgia state law.

  • What if I’m a Georgia retailer who purchased tires from an in-state or an out-of-state distributor? Do I have to collect the fee when I sell those tires?

    No.  The fee should have been collected by the distributor who sold the tires to you.

  • I'm a retailer that purchases tires from both manufacturers and distributors and keeps all of these tires in a warehouse, regardless of location. I then ship those tires to retail locations in Georgia and to out-of-state retail locations.

    Do I have to collect the fee when I ship those tires to Georgia retail locations?

    Yes, in this case the warehouse is acting as the distributor and would collect the fee on the tires sold to tire retailers and ultimate consumers in Georgia.  

  • What if I’m a Georgia retailer who purchased tires from an out-of-state retailer? Do I have to collect the fee when I sell those tires?

    No.  The fee should have been collected by the out-of-state retailer who sold the tires to you.  In this situation, the out-of-state retailer is considered to be a distributor for purposes of Georgia law.

  • What if I’m a Georgia retailer who purchased tires from another Georgia retailer? Do I have to collect the fee when I sell those tires?

    No.  The fee should have been collected either by the Georgia retailer who sold the tires to you, or by the distributor who sold the tires to that Georgia retailer.

  • What if I’m an out-of-state retailer and Georgia residents or entities travel to my non-Georgia location to buy tires in person? Do I have to collect the fee when I sell those tires?

    No.  You are not making a sale in Georgia.

  • I am a New Tire Retailer and the distributor I purchase tires from charges me the 1-dollar fee and reports and pays it to EPD. Can I pass that charge on to my customer and itemize it on the receipt?

    Pricing and itemization are business decisions and are not affected by this rule change. 

  • We are a tire manufacturer and sell tires directly to an auto manufacturer? Do we collect and pay the fee on those tires?

    No, those tires are not “new replacement tires”.  They are the initial tires on the automobile and are not subject to the fee. 

  • If Wholesaler A (who is located in GA) sells a tire to Wholesaler B (who is also in GA), and Wholesaler B sells the tire to a retailer (who is in GA) who then sells the tire to Georgia retailers and end users. Who collects the fee?

    Wholesaler B sells to retailers in Georgia and is considered the distributor. Wholesaler B is responsible for collecting the fee on the tire when he sells it to the retailer.  

  • My business has both a retail AND a wholesale division that sells to end users and to other shops in and out of Georgia.

    In this scenario, you would be considered the distributor since you sell tires to retailers in Georgia. You are responsible to collect the fee and report for the tires you sell to retailers and to ultimate consumers in Georgia.   

  • If a distributor sells to a car dealership that sells replacement tires in their shop to customers and to tire retailers, who collects the fee?

    The first time a tire is sold in Georgia to a tire retailer or to customer using those tires, the entity making that sale is the distributor and, thus, responsible for collecting the fee. In this example, the distributor (making the first sale to the dealership) is responsible for collecting the fee.

  • Where can I submit questions and comments about this change?

    Questions and comments may be emailed to [email protected].