§ 105-187.16. Tax imposed.
§ 105‑187.16. Taximposed.
(a) Levy. A privilegetax is imposed on a tire retailer at a percentage rate of the sales price ofeach new tire sold at retail by the retailer. A privilege tax is imposed on atire retailer and on a tire wholesale merchant at a percentage rate of thesales price of each new tire sold by the retailer or wholesale merchant to awholesale merchant or retailer for placement on a vehicle offered for sale,lease, or rental by the retailer or wholesale merchant. An excise tax is imposedon a new tire purchased for storage, use, or consumption in this State or forplacement in this State on a vehicle offered for sale, lease, or rental. Thisexcise tax is a percentage rate of the purchase price of the tire. These taxesare in addition to all other taxes.
(b) Rate. Thepercentage rate of the taxes imposed by subsection (a) of this section is setby the following table; the rate is based on the bead diameter of the new tiresold or purchased:
BeadDiameter of Tire PercentageRate
Lessthan 20 inches 2%
Atleast 20 inches 1%.
(1991, c. 221, s. 1; 1993, c. 548, s. 1; 1997‑209,s. 1; 2001‑414, s. 22; 2002‑10, s. 1.)