Did Utah's waste-tire recycling fee apply to tires sold separately or installed on garden tractors and lawn mowers?

Plain-English summary

Utah Private Letter Ruling 90-011 addressed the waste-tire recycling fee on tires sold for garden tractors and lawn mowers.

The seller asked about tires installed on new units and replacement tires sold separately.

The Commission concluded that the fee did not apply.

Statutory tire definition

Utah Code section 26-32a-103(10) defined a tire as a pneumatic rubber covering designed for the wheel of a vehicle in which a person or property could be transported or drawn on a highway.

The Commission focused on the highway-design element.

Garden tractors and lawn mowers, whether riding or not, were not designed to transport people or property on a highway.

Tire-retailer status

Because the seller did not sell vehicles designed for highway use, the Commission did not treat it as a tire retailer for purposes of the Tire Recycling Fee Act.

That classification controlled the collection duty.

Holding

Under the described business:

• Garden tractors and lawn mowers were not designed for highway transport.
• Their tires did not fall within the cited statutory definition.
• The seller was not a tire retailer for purposes of the Act.
• No fee was due on covered lawn-and-garden tires sold separately.
• No fee was due when the tires were sold as part of a garden tractor or lawn mower.

What this means for you

Lawn and garden equipment dealers

The historical ruling looked to the designed use of the vehicle or equipment, not simply whether it had pneumatic tires.

Replacement-parts sellers

A separately sold tire did not trigger the fee under these facts because it was for non-highway lawn-and-garden equipment.

Accountants and tax professionals

Verify the current statutory definitions and treatment of products that can operate both on and off highways.

Common questions

Q: Was the fee due on tires installed on garden tractors?

A: No.

Q: Was the fee due on lawn-mower tires sold separately?

A: No.

Q: Why did the fee not apply?

A: The equipment was not designed to transport people or property on a highway.

Q: Was the seller treated as a tire retailer under the Act?

A: No.

Key source language

• Tire definition: a tire covered a vehicle in which a person or property “is or may be transported or drawn upon a highway.”
• Product design: garden tractors and lawn mowers “are not designed to be transported or drawn upon a highway.”
• Retailer status: the seller was “not considered to be a tire retailer for the purpose of the Tire Recycling Fee Act.”
• Collection result: it was “not required to collect the fee on tires sold separately or as part of garden tractor or lawn mower sale.”

Citations and references

• Utah Code Ann. §§ 26-32a-101 through 26-32a-113
• Utah Code Ann. § 26-32a-103(10)

Source

• Landing page: Utah Private Letter Rulings
• Official ruling: Utah PLR 90-011
• Scope note: the request also listed snow throwers and other motorized lawn-and-garden products, but the response expressly discussed garden tractors and lawn mowers.
• Fetch note: the exact official URL returned HTTP 404 to a direct request and was then retrieved through Sofya.

Original ruling text

Response
December 3, 1990

December
3, 1990

XXXXX

Re: Advisory Opinion - Waste Tire Recycling Fee

Dear
XXXXX:

This
letter is in response to your recent request for a Tax Commission ruling on whether you must collect the waste tire recycling fee on the sale of lawn and garden tractors and mowers.

The
Tax Commission policy is to refer such requests to the division most qualified to analyze the request and make recommendations concerning it. As such, your request was referred to the Tax Commission's Auditing Division for their analysis and recommendation. The Division's recommendation is as follows:

1.
Code Section 26-32a-103(10) in defining a tire says a "tire means a pneumatic rubber covering designed to encircle the wheel of a vehicle in which a person or property is or may be transported or drawn upon a highway." Garden tractors and lawn mowers, whether riding or not, are not designed to be "transported or drawn upon a highway."

2.
Since XXXXX does not sell vehicles designed for use on highways, they are not considered to be a tire retailer for the purpose of the Tire Recycling Fee Act and, therefore, are not required to collect the fee on tires sold separately or as part of garden tractor or lawn mower sale.

For
the Commission,

Joe
B. Pacheco

Commissioner

To:
XXXXX

Auditing
Division

Utah
State Tax Commission

Dear
XXXXX:

Per
our phone conversation of 10-2-90, I am writing to ask for an advisory opinion as to whether or not the "Tire Recycling Fee", Senate Bill 5 (Utah Code 26-32a-101 through 113, effective July 1, 1990 applies to tires sold on new units as well as replacement parts for the following types of products we handle:

Garden
Tractors

Riding
Lawn mowers

Walk
Behind Snow throwers (Gasoline engine or electric powered) (Pneumatic and semi-pneumatic tires)

Walk
Behind Lawn mowers (Gasoline engine or electric powered) (Pneumatic and semi-pneumatic tires)

Various
other types of motorized lawn and garden products as illustrated in enclosed literature.

Enclosed
is literature depicting the types of products we have in question.

Your
prompt reply will be greatly appreciated.

Sincerely,

XXXXX

Partner-Manager