If you sell and deliver tires at retail in Illinois, you may be required to collect and pay us the Illinois Tire User Fee.
The tire user fee is imposed at the rate of $2.50 per tire.
What tires are subject to the tire user fee?
The tire user fee is imposed on new and used tires for vehicles in which persons or property may be
transported or drawn upon a highway, as defi ned in the Illinois Vehicle Code, Section 1-217. The fee also
applies to new and used tires for aircraft, special mobile equipment (such as street sweepers and road
construction and maintenance machinery), and implements of husbandry (farm wagons and combines).
What tires are now excluded from the tire user fee, and what retail sales are exempt?
Tires now excluded from the fee are, generally, those tires that are placed on a vehicle that is not
transported or drawn upon a highway, i.e., race cars, fork lifts, all-terrain vehicles, and lawn and garden
tractors. Also, reprocessed tires are not subject to the fee. A “reprocessed tire” is a used tire that has been
recapped, retreaded, or regrooved and that has not been placed on a vehicle wheel rim. However, used
tires sold at retail that have not been “reprocessed” are not exempt.
While certain retail sales may be exempt from sales tax, they may nevertheless be subject to the tire user
fee. Only the following retail sales are exempt: tires sold as part of a vehicle sale, tires sold through mail
order, tires sold at wholesale or for resale, and tires that are not delivered in Illinois.
Purchasers such as government agencies, schools, and charitable organizations who are exempt from
paying sales tax are not exempt from paying the tire user fee.
Do all tire retailers need to be registered with the Ilinois Department of Revenue to pay the tire
No. If you pay the fee to all of your retail suppliers who are all registered for the tire user fee and who agree
to collect and pay the fee for you, you do not have to register with us.
A registered retail supplier who makes such an arrangement with the tire retailer is liable for the fee on all
tires sold to the tire retailer and must provide the tire retailer with a receipt that refl ects the tire user fee
collected on each transaction and accept used tires for recycling from the tire retailer’s customers.
The tire retailer must maintain records showing that the appropriate fee was paid to the retail supplier and
that the retail supplier has agreed to pay the fee to us. The tire retailer must provide the customer with a
receipt that separately states the tire user fee.
Illinois Department of Revenue
Illinois Tire User Fee