Tax Application on the Firestone Tire Recall

NR# 43-G
Date: August 25, 2000
Customer and Taxpayer Services Division

Tax Application on the Firestone Tire Recall

In response to consumer inquiries, Dean Andal, Chairman, Board of Equalization (BOE) announced today that consumers should not be charged an amount as sales tax or the tire recycling fee when they receive tires at no charge as replacements for the recalled Firestone tires. Regardless of who installs the tires, or whether Firestone tires or any other brand of tires are used for replacement, no sales tax is due. The retailer replacing the tires is acquiring the tires for resale and distributing them as a warranty replacement as part of the original sales transaction.

In situations where a consumer wants to purchase upgraded tires above the value of the original Firestone tires, sales tax is due on the amount paid by the consumer for the upgraded tires and the tire recycling fee is due.

For more information, please call the BOE's toll-free Customer Service Information Center at 1-800-400-7115. Staff is available from 8:00 a.m. to 5:00 p.m. Monday through Friday, excluding State holidays.