Alaska imposes a tire fee on all new tires sold in Alaska. An additional tire fee is imposed on the sale of tires with studs weighing more than 1.1 grams each (heavy studs). The additional tire fee applies to the installation of heavy studs in new and used tires. The division collects tire fees primarily from tire dealerships.
A $2.50 fee applies to each new tire. An additional $5 fee applies to each studded tire ($7.50 total tire fee for new studded tires).
Taxpayers are required to file returns and remit fees quarterly. Returns and fees are due 30 days following the quarter in which the new tires were sold or studs were installed. Taxpayers may retain 5 percent or the amount collected, limited to a maximum of $900 per quarter, to cover expenses associated with collecting and remitting fees.
Sales to federal, state, and local government agencies for official use are exempt from both portions of the tire fee.
Sales for resale, such as those sales between a distributor and dealer, are also exempt.
A certificate of use form, available from the department, is required to be executed at the time of the sale if the sale is exempt from the fee. The certificate of use must be completed and signed by the buyer. The certificate of use must be maintained by the seller for three years.
More information about the tire fee may be found in the Tax Division Annual Report.