The Illinois tire tax is a $2.50 per-tire fee charged on new and used tires sold at retail in the state. Retailers collect it from the customer as a separate line on the receipt and remit it quarterly to the Illinois Department of Revenue on Form ST-8.1Illinois Environmental Protection Agency. Used Tires Technically it is called the Tire User Fee, and the $2.50 is made up of two amounts stacked together: $2.00 goes to the Used Tire Management Fund and $0.50 goes to the Emergency Public Health Fund.2Illinois General Assembly. Illinois Compiled Statutes 415 ILCS 5/55.8 – Tire Retailers The customer sees one $2.50 charge.
Which Tire Sales Are Taxed
The fee applies to any new or used tire sold and delivered at retail in Illinois that falls into one of four categories:3Illinois Department of Revenue. Tire User Fee
- Tires for highway vehicles as defined in Section 1-217 of the Illinois Vehicle Code, which covers passenger cars, trucks, SUVs, motorcycles, and trailers.
- Aircraft tires.
- Tires for special mobile equipment such as street sweepers and road construction machinery.
- Tires for implements of husbandry, including farm wagons and combines.
The farm equipment category catches retailers off guard. Implements of husbandry are sometimes assumed to be exempt, but the statute and the Department of Revenue both include them.3Illinois Department of Revenue. Tire User Fee Aircraft tires are the other one people miss.
Which Sales Are Exempt
Four categories of sales do not trigger the $2.50 fee:4Illinois Department of Revenue. ST-8 Tire User Fee Return Instructions
- Tires included in the sale of a vehicle. When a dealership sells a car or truck, the tires already on it are not treated as a tire sale under the statute.2Illinois General Assembly. Illinois Compiled Statutes 415 ILCS 5/55.8 – Tire Retailers
- Mail-order sales, whether the tires ship inside or outside Illinois.
- Wholesale and resale transactions, where the buyer intends to resell rather than use the tires. Keep documentation of resale intent.
- Tires not delivered in Illinois. If the tire physically leaves the state before delivery, no fee is due.
The vehicle-sale exemption is narrow. A dealership that also sells replacement tires as a separate transaction owes the fee on those replacement sales.
Filing Form ST-8
Retailers report and pay using Form ST-8, the Tire User Fee Return. You need an Illinois Business Tax number to file. The return counts every tire sold during the quarter, subtracts exempt sales, and multiplies the taxable total by $2.50.4Illinois Department of Revenue. ST-8 Tire User Fee Return Instructions
Returns are due quarterly:3Illinois Department of Revenue. Tire User Fee
- April 20 for January through March
- July 20 for April through June
- October 20 for July through September
- January 20 for October through December
When a due date lands on a weekend or holiday, it moves to the next business day. Filing through MyTax Illinois at mytax.illinois.gov is the fastest option and produces an immediate confirmation.5Illinois Department of Revenue. ST-8 Tire User Fee Paper returns are also accepted.
The $0.10 Collection Allowance
Retailers who file and pay on time keep $0.10 per taxable tire as a collection allowance.2Illinois General Assembly. Illinois Compiled Statutes 415 ILCS 5/55.8 – Tire Retailers On 500 tires in a quarter, that is $50 back. The allowance is calculated on Line 5 of Form ST-8 and subtracted from the amount due.4Illinois Department of Revenue. ST-8 Tire User Fee Return Instructions
File a day late and the allowance is gone for the whole quarter. There is no partial credit.
Letting a Supplier Remit for You
You do not have to file Form ST-8 yourself if your tire supplier is registered with the Department of Revenue for the Tire User Fee and agrees to remit on your behalf.3Illinois Department of Revenue. Tire User Fee Under that arrangement the supplier carries the liability to the state.
Conditions apply. The supplier must give you a receipt showing the tire fee as a separate item on every purchase and must accept used tires for recycling from your customers. You still charge the customer $2.50 and show it separately on the customer’s receipt. Keep supplier receipts and written evidence of the remittance agreement; without them, an audit puts the liability back on you.2Illinois General Assembly. Illinois Compiled Statutes 415 ILCS 5/55.8 – Tire Retailers
There is a cost to this route: the supplier claims the $0.10 per tire collection allowance, not you.3Illinois Department of Revenue. Tire User Fee
What Late or Missed Filings Cost
Missing a quarterly deadline hits you twice. You forfeit the $0.10 per tire allowance for that quarter, and the Department of Revenue adds penalty and interest to the fee amount owed.3Illinois Department of Revenue. Tire User Fee The rates come from the Uniform Penalty and Interest Act at 35 ILCS 735, published in the Department’s Publication 103.
Not collecting the fee from customers does not eliminate the obligation. The statute makes the retailer directly liable on all taxable tire sales if no valid supplier arrangement is in place.2Illinois General Assembly. Illinois Compiled Statutes 415 ILCS 5/55.8 – Tire Retailers In that situation, the retailer pays out of pocket.
Records to Keep
Keep records that separate taxable from exempt sales, receipts showing the fee was charged as a distinct line item, and resale certificates from any wholesale buyers.1Illinois Environmental Protection Agency. Used Tires If you use the supplier remittance route, add supplier receipts and the written agreement to remit.
The tire fee statute does not set its own retention period. General Illinois business tax guidance points to six or seven years, and holding records longer is cheap protection if an audit reaches back further than expected.