Florida’s New Tire Fee & Lead-Acid Battery Fee

Businesses operating within Florida must navigate several critical fees and surcharges related to solid waste management. These regulations aim to promote environmental sustainability while ensuring compliance with state laws. Below is an in-depth overview of the most pertinent requirements, including the New Tire Fee, Lead-Acid Battery Fee, Rental Car Surcharge, and the Tax on Gross Receipts of Dry-Cleaning Facilities.

New Tire Fee

The New Tire Fee is a state-imposed fee of $1.00 for every new motor vehicle tire sold at retail in Florida. This fee is directly applied to the retail seller, who must ensure compliance by properly documenting and collecting the fee.

When the Fee Applies

The fee is applicable in the following situations:

• When tires are sold individually to customers.
• When new tires are sold as part of a motor vehicle package.
• Sales made to governmental entities and nonprofit organizations are not exempt and remain subject to the fee.
  
  

Documentation Requirements

• The New Tire Fee must be clearly and separately stated on the sales invoice.
• This fee is also included in the taxable sales amount, subject to Florida’s applicable sales tax.
  
  

Definitions and Clarifications

A “new tire” is defined as a tire that has never been used on any motor vehicle, whether on or off Florida roads. However, recapped or retreaded tires are explicitly excluded from this definition and are not subject to the fee.

Motor vehicles, for the purposes of this fee, include a broad range of transportation devices, such as:

• Automobiles, motorcycles, and trucks.
• Trailers, semi-trailers, and truck tractors.
• Off-road vehicles like golf carts, all-terrain vehicles, and travel trailers.
  
  

Exemptions to the New Tire Fee

There are specific instances where the fee does not apply:

• New tires sold for resale are exempt, provided the seller obtains a valid Florida Annual Resale Certificate (Form DR-13) or a resale authorization number.
• Tires used exclusively on muscle-driven, track-driven, or farm-use vehicles, such as bicycles, mopeds, and farm trailers, are exempt. Purchasers must present a completed exemption certificate at the time of purchase.
  
  

Refunds and Adjustments

• A full credit for the fee is permitted if a customer returns a new tire.
• No fee is due when tires are swapped at no additional cost.
• If a partial refund is issued for a new tire purchase, the full fee still applies.

For more detailed information, refer to Rule 12A-12.001, Florida Administrative Code (F.A.C.), available at flrules.org.

Lead-Acid Battery Fee

The Lead-Acid Battery Fee, set at $1.50 per battery, is applicable to both new and remanufactured batteries sold at retail. This fee targets batteries designed for use in motor vehicles, vessels, or aircraft.

Scope of the Fee

The fee applies in the following scenarios:

• Retail sales of individual batteries.
• Batteries included as a component in a vehicle, vessel, or aircraft.
• Sales to governmental or nonprofit entities are not exempt from the fee.
  
  

Billing and Documentation

• The fee does not need to be separately stated on invoices. However, if it is, the amount must also be included in the taxable sales price.
  
  

Exemptions and Refund Policies

• Batteries sold for resale purposes are exempt. Sellers must retain a valid resale certificate or authorization number as proof.
• A full credit for the fee is allowed if the battery is returned for a refund.
• No fee applies to battery exchanges made without charge.
• In cases where a partial refund is provided, the entire fee remains due.

For further details, consult Rule 12A-12.0011, F.A.C.

Rental Car Surcharge

The state imposes a Rental Car Surcharge on certain vehicle lease or rental agreements. This surcharge applies to transactions involving motor vehicle rental companies, car-sharing services, and peer-to-peer car-sharing programs.

Surcharge Rates and Applicability

1. Motor Vehicle Rentals: A surcharge of $2.00 per day (or any portion of a day) is applied for up to 30 consecutive days of rental.
2. Car-Sharing Services:
   • For usage periods under 24 hours, a $1.00 surcharge per use is applied.
   • For usage periods of 24 hours or more, the surcharge increases to $2.00 per day.
3. Peer-to-Peer Car-Sharing Programs: A $1.00 surcharge per day applies for up to 30 consecutive days.
   
   

Exemptions and Special Conditions

• Transactions conducted at airport or airport authority-operated locations are exempt from the surcharge.
• The surcharge must be separately stated on invoices and is subject to applicable sales tax.

Tax on Gross Receipts of Dry-Cleaning Facilities

A 2% tax is levied on the gross receipts of dry-cleaning and dry drop-off facilities for laundering or dry-cleaning services. This tax is imposed directly on the facilities themselves.

Exemptions to the Tax

• Receipts from coin-operated laundry machines.
• Services provided as “wash, dry, and fold.”
• Uniform rentals and linen supply services.
• Sales made to other facilities for resale purposes.
  
  

Passing the Tax to Customers

Facilities have the option to pass the tax on to customers as a separate line item on invoices. When doing so, the bill must include a note indicating that the tax imposition was requested by the Florida Dry Cleaners Coalition.

Registration, Filing, and Payment Obligations

Registration Requirements

All businesses subject to these fees and surcharges must register with the Florida Department of Revenue. Registration can be completed online at floridarevenue.com/taxes/registration.

Filing and Payment Details

• Fees and taxes are reported using the Solid Waste and Surcharge Return (Form DR-15SW).
• Returns and payments are due on the 1st day of the month and considered late after the 20th day of the month. If the due date falls on a weekend or holiday, the deadline extends to the next business day.
• Electronic filing and payment are required for businesses that paid $5,000 or more in fees during the prior fiscal year.