Bloomberg Bloomberg
Comprehensive Tax Research. Practitioner to Practitioner. ®

Internal Revenue Code, § 4071. Imposition Of Tax

I.R.C. § 4071(a) Imposition And Rate Of Tax
There is hereby imposed on taxable tires sold by the manufacturer, producer, or importer thereof a tax at the rate of 9.45 cents (4.725 cents in the case of a biasply tire or super single tire) for each 10 pounds so much of the maximum rated load capacity thereof as exceeds 3,500 pounds.
I.R.C. § 4071(b) Special Rule For Manufacturers Who Sell At Retail
Under regulations prescribed by the Secretary, if the manufacturer, producer, or importer of any tire delivers such tire to a retail store or retail outlet of such manufacturer, producer, or importer, he shall be liable for tax under subsection (a) in respect of such tire in the same manner as if it had been sold at the time it was delivered to such retail store or outlet. This subsection shall not apply to an article in respect to which tax has been imposed by subsection (a). Subsection (a) shall not apply to an article in respect of which tax has been imposed by this subsection.
I.R.C. § 4071(c) Tires On Imported Articles
For the purposes of subsection (a), if an article imported into the United States is equipped with tires—
I.R.C. § 4071(c)(1)
the importer of the article shall be treated as the importer of the tires with which such article is equipped, and
I.R.C. § 4071(c)(2)
the sale of the article by the importer thereof shall be treated as the sale of the tires with which such article is equipped.
This subsection shall not apply with respect to the sale of an automobile bus chassis or an automobile bus body.
I.R.C. § 4071(d) Termination
On and after October 1, 2022,1 the taxes imposed by subsection (a) shall not apply.
1 The termination date for this provision was extended under section 702 of the Surface Transportation Revenue Act of 1991, P.L. 102-240.
(Aug. 16, 1954, ch. 736, 68A Stat. 482; June 29, 1956, ch. 462, title II, Sec. 204(a), 70 Stat. 388; Apr. 22, 1960, Pub. L. 86-440, Sec. 1(a), 74 Stat. 80; June 29, 1961, Pub. L. 87-61, title II, Sec. 202, 75 Stat. 124; Aug. 1, 1966, Pub. L. 89-523, Sec. 1(a), 80 Stat. 331; Dec. 31, 1970, Pub. L. 91-605, title III, Sec. 303(a)(5), 84 Stat. 1744; Dec. 10, 1971, Pub. L. 92-178, title IV, Sec. 401(f), 85 Stat. 533; May 5, 1976, Pub. L. 94-280, title III, Sec. 303(a)(5), 90 Stat. 456; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), 90 Stat. 1834; Nov. 6, 1978, Pub. L. 95-599, title V, Sec. 502(a)(4), 92 Stat. 2756; Apr. 1, 1980, Pub. L. 96-222, title I, Sec. 108(c)(2)(C), 94 Stat. 227; Dec. 24, 1980, Pub. L. 96-596, Sec. 4(a)(1), 94 Stat. 3475; Dec. 24, 1980, Pub. L. 96-598, Sec. 1(d), 94 Stat. 3486; Jan. 6, 1983, Pub. L. 97-424, title V, Sec. 514(a), 516(a)(2), 96 Stat. 2181, 2182; July 18, 1984, Pub. L. 98-369, div. A, title VII, Sec. 735(c)(2), 98 Stat. 982; Apr. 2, 1987, Pub. L. 100-17, title V, Sec. 502(a)(3), 101 Stat. 256; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11211(c)(2), 104 Stat. 1388-426; Dec. 18, 1991, Pub. L. 102-240, title VIII, Sec. 8002(a)(2); June 9, 1998, Pub. L. 105-178, title IX, Sec. 9002(a)(1)(E), 112 Stat 107; Oct. 22, 2004, Pub. L. 108-357, title VIII, Sec. 869, 118 Stat. 1418; Aug. 10, 2005, Pub. L. 109-59, title XI, Sec. 11101(a)(1)(E), 119 Stat. 1144; Pub. L. 112-30, title I, Sec. 142(a)(2), Sept. 16, 2011, 125 Stat. 342; Pub. L. 112-102, title IV, Sec. 402(a), Mar. 30, 2012, 126 Stat. 271; Pub.L. 112-140, Sec. 402(a)(2), June 29, 2012, 126 Stat. 391; Pub. L. 112-141, Sec. 40102(a)(2), July 6, 2012, 126 Stat. 405; Pub. L. 114-94, Div. C, title XXXI, Sec. 31102(a)(2)(C), Dec. 4, 2015.)
BACKGROUND NOTES
Amendments to Part
1984--Pub. L. 98-369, div. A, title VII, 735(c)(5)(A), (C), July 18, 1984, 98 Stat. 982, struck out “AND TUBES” from heading of part II, and substituted “Exemption for tires with internal wire fastening” for “Exemptions” in item 4073.
1956--Act June 29, 1956, ch. 462, title II, 204(d), 70 Stat. 389, substituted “Definitions” for “Definition of rubber” in item 4072.
AMENDMENTS
2015 - Subsec. (d). Pub. L. 114-94, Sec. 31102(a)(2)(C), amended subsec. (d) by substituting “October 1, 2022” for “October 1, 2016”.
2012 - Subsec. (d). Pub. L. 112-141, Sec. 40102(a)(2)(C), amended subsec. (d) by substituting “October 1, 2016” for “July 1, 2012”
Subsec. (d). Pub. L. 112-140, Sec. 402(a)(2)(C), amended subsec. (d) by substituting “July 7, 2012” for “July 1, 2012”. Note that Pub. L. 112-140 was enacted as a temporary extension of Federal-aid highway, highway safety, motor carrier safety, transit, and other programs funded out of the Highway Trust Fund pending enactment of a multiyear law reauthorizing such programs [Pub. L. 112-141]. See Special Rule for Execution of Amendments in MAP-21, below, for further explanation.
Subsec. (d). Pub. L. 112-102, Sec. 402(a)(2)(C), amended subsec. (d) by substituting “July 1, 2012” for “April 1, 2012”.
2011 - Subsec. (d). Pub. L. 112-30, Sec. 142(a)(2)(C), amended subsec. (d) by substituting “April 1, 2012” for “October 1, 2011”.
2005 - Subsec. (d). Pub. L. 109-59, Sec. 11101(a)(1)(E), amended subsec. (d) by substituting “2011” for “2005”.
2004 - Subsec. (a). Pub. L. 108-357, Sec. 869(a), amended subsec. (a). Before amendment it read as follows:
“(a) Imposition and rate of tax
“There is hereby imposed on tires of the type used on highway vehicles, if wholly or in part made of rubber, sold by the manufacturer, producer, or importer a tax at the following rates:
 

If the tire weighs:                 The rate of tax is:

  Not more than 40 lbs................No tax.

  More than 40 lbs. but......... .....15 cents per lb. in
  not more than 70 lbs                excess of 40 lbs.

  More than 70 lbs. but...............$4.50 plus 30 cents per
  not more than 90 lbs                lb. in excess of 70 lbs.

  More than 90 lbs....................$10.50 plus 50 cents per
                                      lb. in excess of 90 lbs.”
Subsec. (c). Pub. L. 108-357, Sec. 869(d)(1), struck subsec. (c). Before being struck, it read as follows:
“(c) Determination of weight
“For purposes of this section, weight shall be based on total weight exclusive of metal rims or rim bases. Total weight of the articles shall be determined under regulations prescribed by the Secretary.”
Subsec. (e). Pub. L. 108-357, Sec. 869(d)(1), redesignated subsec. (e) as subsec. (c).
1998 - Subsec. (d). Pub. L. 105-178, Sec. 9002(a)(1)(E) substituted “2005” for “1999”.
1991 - Subsec. (d). Pub. L. 102-240, Sec. 8002(a)(2) substituted “1999” for “1995”.
1990 - Subsec. (d). Pub. L. 101-508 substituted “1995” for “1993”.
1987 - Subsec. (d). Pub. L. 100-17 substituted “1993” for “1988”.
1984 - Subsec. (b). Pub. L. 98-369, Sec. 735(c)(2)(A), struck out “or inner tube” after “any tire”, and struck out “or tube” after “such tire” in two places in first sentence.
Subsec. (c). Pub. L. 98-369, Sec. 735(c)(2)(B), substituted “on total weight exclusive” for “on total weight, except that in the case of tires such total weight shall be exclusive”.
Subsec. (e). Pub. L. 98-369, Sec. 735(c)(2)(C), struck out “or inner tubes (other than bicycle tires and inner tubes)” after “equipped with tires” in provisions preceding par. (1), struck out “and inner tubes” before “with which such article is equipped” in pars. (1) and (2), and substituted “sale of an automobile bus chassis or an automobile bus body” for “sale of an article if a tax on such sale is imposed under section 4061 or if such article is an automobile bus chassis or an automobile bus body” in provisions following par. (2).
Subsec. (f). Pub. L. 98-369, Sec. 735(c)(2)(D), struck out subsec. (f) which related to imported recapped or retreaded United States tires.
1983 - Subsec. (a). Pub. L. 97-424, Sec. 514(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: ‘There is hereby imposed upon the following articles, if wholly or in part of rubber, sold by the manufacturer, producer, or importer, a tax at the following rates:
“(1) Tires of the type used on highway vehicles, 9.75 cents a pound.
“(2) Other tires (other than laminated tires to which paragraph (5) applies), 4.875 cents a pound.
“(3) Inner tubes, for tires, 10 cents a pound.
“(4) Tread rubber, 5 cents a pound.
“(5) Laminated tires (not of the type used on highway vehicles) which consist wholly of scrap rubber from used tire casings with an internal metal fastening agent, 1 cent a pound.”
Subsec. (d). Pub. L. 97-424, Sec. 516(a)(2), substituted provision that, on and after Oct. 1, 1988, the taxes imposed by subsec. (a) shall not apply, for provision that, on and after Oct. 1, 1984, the tax imposed by subsec. (a)(1) would be 4.875 cents a pound, that by subsec. (a)(3) would be 9 cents a pound, and that subsec. (a)(4) would not apply.
1980 - Subsec. (a)(1). Pub. L. 96-596, Sec. 4(a)(1)(A), substituted ‘9.75 cents’ for ‘10 cents’.
Subsec. (a)(2). Pub. L. 96-596, Sec. 4(a)(1)(B), substituted ‘4.875 cents’ for ‘5 cents’.
Subsec. (d)(1). Pub. L. 96-596, Sec. 4(a)(1)(C), substituted ‘4.875 cents’ for ‘5 cents’.
Subsec. (e). Pub. L. 96-222 inserted references to an automobile bus chassis or body.
Subsec. (f). Pub. L. 96-598 added subsec. (f).
1978 - Subsec. (d). Pub. L. 95-599 substituted ‘1984’ for ‘1979’.
1976 - Subsecs. (b), (c). Pub. L. 94-455 struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (d). Pub. L. 94-280 substituted ‘1979’ for ‘1977’.
1971 - Subsec. (e). Pub. L. 92-178 added subsec. (e).
1970 - Subsec. (d). Pub. L. 91-605 substituted ‘1977’ for ‘1972’.
1966 - Subsecs. (b) to (d). Pub. L. 89-523 added subsec. (b) and redesignated former subsec. (b) and (c) as (c) and (d), respectively.
1961 - Subsec. (a)(1). Pub. L. 87-61, Sec. 202(a), increased tax from 8 to 10 cents a pound.
Subsec. (a)(3). Pub. L. 87-61, Sec. 202(c), increased tax from 9 to 10 cents a pound.
Subsec. (a)(4). Pub. L. 87-61, Sec. 202(c), increased tax from 3 to 5 cents a pound.
Subsec. (c). Pub. L. 87-61, Sec. 202(d), substituted ‘October 1, 1972’ for ‘July 1, 1972’, added par. (2), and redesignated former par. (2) as (3).
1960 - Subsec. (a)(2). Pub. L. 86-440, Sec. 1(a)(1), inserted ‘(other than laminated tires to which paragraph (5) applies)’ after ‘other tires’.
Subsec. (a)(5). Pub. L. 86-440, Sec. 1(a)(2), added par. (5).
1956 - Act June 29, 1956, increased tax on tires of type used on highway vehicles from 5 cents a pound to 8 cents a pound, provided for a tax of 3 cents a pound on tread rubber, and required on and after July 1, 1972, a reduction in tax on tires of type used on highway vehicles from 8 cents a pound to 5 cents a pound, and elimination of tax on tread rubber.
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Sec. 31102(a) of Pub. L. 114-94 effective on October 1, 2016.
EFFECTIVE DATE OF 2012 AMENDMENTS
Amendment by Sec. 40102(a) of Pub. L. 112-141 effective on July 1, 2012.
Amendment by Sec. 402(a) of Pub. L. 112-140 effective on July 1, 2012.
Amendment by Sec. 402(a) of Pub. L. 112-102 effective on April 1, 2012.
EFFECTIVE DATE OF 2011 AMENDMENT
Amendment by Sec. 142(a) of Pub. L. 112-30 effective on October 1, 2011.
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Sec. 11101(a)(1)(E) of Pub. L. 109-59 effective on the date of the enactment of this Act [Enacted: Aug. 10, 2005].
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendments by Sec. 869 of Pub. L. 108-357 effective for sales in calendar years beginning more than 30 days after the date of the enactment of this Act [Enacted: Oct. 22, 2004].
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Sec. 9002(a)(1) of Pub. L. 105-178 effective on June 9, 1998.
EFFECTIVE DATE OF 1991 AMENDMENT
Amendment by Sec. 8002(a)(2) of Pub. L. 102-240 effective on December 18, 1991.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective, except as otherwise provided, as if included in the provisions of the Highway Revenue Act of 1982, title V of Pub. L. 97-424, to which such amendment relates, see section 736 of Pub. L. 98-369, set out as a note under section 4051 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 514(b) of Pub. L. 97-424 provided that: ‘The amendment made by this section (amending this section) shall apply to articles sold on or after January 1, 1984’.
EFFECTIVE DATE OF 1980 AMENDMENTS
Section 1(e) of Pub. L. 96-598 provided that: ‘The amendments made by this section (amending this section and sections 6416 and 6511 of this title) shall take effect on the first day of the first calendar month which begins more than 10 days after the date of the enactment of this Act (Dec. 24, 1980).’
Section 4(a)(2) of Pub. L. 96-596 provided that: ‘The amendments made by this subsection (amending this section) shall apply on and after January 1, 1981.’
Amendment by Pub. L. 96-222 effective as if included in the provision of the Energy Tax Act of 1978, Pub. L. 95-618, Nov. 9, 1978, 92 Stat. 3174, to which such amendment relates, see section 108(c)(7) of Pub. L. 96-222, set out as a note under section 48 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Section 401(h) of Pub. L. 92-178 provided that:
‘(1) Except as otherwise provided in this section, the amendments made by subsections (a), (f), and (g) (amending this section and sections 4061, 4062, 4063, 4216, 4221, 4222, 6412, and 6416 of this title) of this section shall apply with respect to articles sold on or after the day after the date of the enactment of this Act (Dec. 10, 1971).
‘(2) For purposes of paragraph (1), an article shall not be considered sold before the day after the date of the enactment of this Act (Dec. 10, 1971) unless possession or right to possession passes to the purchaser before such day.
‘(3) In the case of -
‘(A) a lease,
‘(B) a contract for the sale of an article where it is provided that the price shall be paid by installments and title to the article sold does not pass until a future date notwithstanding partial payment by installments,
‘(C) a conditional sale, or
‘(D) a chattel mortgage arrangement wherein it is provided that the sale price shall be paid in installments, entered into on or before the date of the enactment of this Act (Dec. 10, 1971), payments made after such date, with respect to the article leased or sold shall, for purposes of this subsection, be considered as payments made with respect to an article sold after such date, if the lessor or vendor establishes that the amount of payments payable after such date with respect to such article has been reduced by an amount equal to that portion of the tax applicable with respect to the lease or sale of such article which is due and payable after such date. If the lessor or vendor does not establish that the payments have been so reduced, they shall be treated as payments made in respect of an article sold before the day after the date of the enactment of this Act.’
EFFECTIVE DATE OF 1966 AMENDMENT
Section 1(b) of Pub. L. 89-523 provided that: ‘The amendments made by subsection (a) (amending this section) shall take effect on the first day of the first calendar quarter which begins more than 20 days after the date on which this Act is enacted (Aug. 1, 1966).’
EFFECTIVE DATE OF 1961 AMENDMENT
Amendment by Pub. L. 87-61 effective July 1, 1961, see section 208 of Pub. L. 87-61, set out as a note under section 4041 of this title.
EFFECTIVE DATE OF 1960 AMENDMENT
Section 1(b) of Pub. L. 86-440 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to articles sold on or after the first day of the first month which begins more than 10 days after the date of the enactment of this Act (April 22, 1960).’
EFFECTIVE DATE OF 1956 AMENDMENT
Amendment by act June 29, 1956, effective July 1, 1956, see section 211 of act June 29, 1956, set out as a note under section 4041 of this title.
SPECIAL RULE FOR EXECUTION OF AMENDMENTS IN MAP-21 [Pub. L. 112-141]
Sec. 1(c) of Pub. L. 112-140 provided the following rule:
“(c) SPECIAL RULE FOR EXECUTION OF AMENDMENTS IN MAP-21.—On the date of enactment of the MAP-21 [Pub. L. 112–141, July 6, 2012]—
“(1) this Act and the amendments made by this Act shall cease to be effective;
“(2) the text of the laws amended by this Act shall revert back so as to read as the text read on the day before the date of enactment of this Act; and
“(3) the amendments made by the MAP-21 shall be executed as if this Act had not been enacted.”
STUDY
Section 1364(c) of Pub. L. 109-58 provided that:
“(1) IN GENERAL. -- With respect to the 1-year period beginning on January 1, 2006, the Secretary of the Treasury shall conduct a study to determine--
“(A) the amount of tax collected during such period under section 4071 of the Internal Revenue Code of 1986 with respect to each class of tire, and
“(B) the number of tires in each such class on which tax is imposed under such section during such period.
“(2) REPORT. -- Not later than July 1, 2007, the Secretary of the Treasury shall submit to Congress a report on the study conducted under paragraph (1).”
ALLOWANCE OF CREDIT OR REFUND OF OVERPAYMENT OF TAX IMPOSED
Section 4(b) of Pub. L. 96-596 provided that:
‘(b) Determination of Overpayment. -
‘(1) In general. - The determination of the extent to which any overpayment of tax imposed by section 4071(a)(1) or (2) or section 4071(b) has arisen by reason of an adjustment of a tire after the original sale pursuant to a warranty or guarantee, and the allowance of a credit or refund of any such overpayment, shall be determined in accordance with the principles set forth in regulations and rulings relating thereto to the extent in effect on March 31, 1978.
‘(2) Effective date. - This subsection shall apply to the adjustment of any tire after March 31, 1978, and prior to January 1, 1983.’