AB 1981 Summary

• Excludes tires on vehicles sold or leased by new motor vehicle dealers from the $1.75 California tire fee and instead imposes a separate California vehicle tire fee of $10.50 per vehicle (through December 31, 2014) and $5.50 per vehicle (January 1, 2015 onward).

• Requires retail vehicle sellers (new motor vehicle dealers) to collect the California vehicle tire fee from purchasers or lessees at the time of sale or lease and remit quarterly to the state for deposit in the California Tire Recycling Management Fund, with retention of 1.5% for collection costs.

• Modifies the Civil Code's conditional sale contract requirements to separately disclose the California vehicle tire fee and make conforming changes to the Automobile Sales Finance Act.

• Creates criminal penalties for knowingly making false statements regarding collection of the California vehicle tire fee, establishing a state-mandated local program with no state reimbursement required.

• Requires the State Board of Equalization, in consultation with the State Air Resources Board and Department of Resources Recycling and Recovery, to submit a report by January 1, 2012 on the fiscal effects of the vehicle tire fee.