Core deposits & tire fees

From the 2024 DOR Tax Exemption Study

82.08.036; 82.12.038 - Core deposits & tire fees Description The value of returnable products such as batteries, starters, and brakes accepted by vendors for recycling or remanufacturing are exempt from sales and use taxes. The $1.00 tire fee is also exempt from sales and use taxes. Purpose To discourage the disposal of certain products into landfills. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.700 $0.710 $0.720 $0.730 Local Taxes $0.310 $0.320 $0.320 $0.330 Repeal of Repealing this exemption would not increase revenues, as "core deposits or credits" exemption would be exempt from sales and use tax under trade-ins. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions No revenue impact from repeal due to core deposits and credits qualifying for exemption from sales and use taxes under trade-ins. Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category: Individuals Year Enacted: 1989 Primary Beneficiaries: Buyers and sellers of new replacement vehicle tires and businesse