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Motor Vehicle Tire Fee Modifications in House Bill 351

Beginning July 1, 2020, but prior to July 1, 2024, a fee is hereby imposed upon a retailer at the rate of $2 for each new motor vehicle, trailer, or semitrailer tire sold in Kentucky. They will continue to be subject to Kentucky sales tax. The retailer will continue to retain the 5% handling fee provided the amount due is paid timely.

General Information

The motor vehicle tire fee is imposed at the rate of $2 on each new tire sold in Kentucky at retail for use on motor vehicles, trailers, and semitrailers.  

  • A "motor vehicle" is one not powered by human propulsion and is used to transport people or property over public highways, including automobiles, trucks, farm and construction equipment, trailers and motorcycles (but not mopeds).
  • A "trailer” means any vehicle: (i) designed (a) as temporary living quarters for recreation, camping, or travel, or (b) for carrying persons or property; (ii) designed for being drawn by a motor vehicle, and (iii) constructed that (a) no part of its weight, and (b) no part of its load; rests upon or is carried by another vehicle.
  • A "semitrailer" means any vehicle: (i) designed (a) as temporary living quarters for recreation, camping, or travel, or (b) for carrying persons or property; (ii) designed for being drawn by a motor vehicle; and (iii) constructed that: (a) some part of its weight, or (b) some part of its load; rests upon or is carried by another vehicle.

Tires sold for vehicles not used on public highways, recapped tires, used tires and tires placed on motor vehicles prior to the original sale of that vehicle are exempt from the fee.

The Motor Vehicle Tire Fee laws are located in KRS 224.50.

224.50-868  New tire fee – Disposal of replaced tire – Report to cabinet – Retailer requirements.


Online Filing Required For All Motor Vehicle Tire Fee Returns

All Motor Vehicle Tire Fee returns must now be filed online using the new e-file services for KY Business One Stop Portal. With your single user name and password for One Stop, you will not only maintain your business information, you will also be able to file Motor Vehicle Tire Fee returns in one convenient place. To file electronically in the newly developed E-file system, you will need One Stop access to your business. If you do not already have access, use the "Link My Business" option on the One Stop dashboard. This registration will also give access for filing your Sales & Use Tax returns in E-file.

An E-file quick start guide with more detailed instruction is available on our webpage. Click here to view the E-file quick start guide.

For specific information concerning the Motor Vehicle Tire Fee please call the Financial Tax Section at (502)-564-4810 or email at DOR.WebResponseFinancialTax@ky.gov.


Waste Tire Trust Fund

The Waste Tire Trust Fund is funded when tire retailers collect a $2 fee on all new replacement motor vehicle, Trailer, and semitrailer tires sold. Retailers may retain five percent to offset administrative costs, but the balance is required to go in the fund, which is dedicated to managing scrap tires and developing sustainable markets for recycled tire products.​

The Waste Tire Collection Program, established in 1998, is part of the Energy and Environment Cabinet’s ongoing effort to rid Kentucky’s landscape of waste tires.

Learn more about the Waste Tire Trust Fund​


Pay Motor Vehicle Tire Fee

Electronic Filing and Payment

eFile Quick Start User Guide

If filing by paper, make your check or money order payable to "KY State Treasurer" and mail it to
     KY Department of Revenue
     Frankfort, KY  40620



All tax payment and e-file options

Financial Tax

Download the Taxpayer Bill of Rights

The Kentucky Department of Revenue conducts work
under the authority of the Finance and Administration Cabinet.

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