For purposes of the new tire fee and the tire recycling fee, the following terms have the meaning indicated. Terms Defined. “First sale” means a sale of a new tire that is not a sale to a wholesaler or out-of-state retailer. “New Tire Fee” means the fee imposed under the Transportation Article, §22-421, Annotated Code of Maryland. “Tire” means a continuous rubber or similar material or synthetic material which is pneumatically designed or intended to cover or encircle a wheel which is manufactured for use on any: Motor vehicle as defined in Tax-General Article, §9-101(g), Annotated Code of Maryland; Trailer as defined in the Transportation Article, §11-169, Annotated Code of Maryland; Farm implement; or Machinery which is similar to the vehicles, trailers, or farm implements, in §B(1)(a)—(c) of this regulation. “Tire dealer” means a person who sells new tires to: A seller of tires in the State that is not a tire wholesaler; or A consumer of a tire on which a recycling fee has not been paid. “Tire recycling fee” means the fee imposed under Environment Article, §9-228, Annotated Code of Maryland. Tire Wholesaler. “Tire wholesaler” means a person who transfers tires to a person who is not a consumer. “Tire wholesaler” does not mean a person who transfers a minimal number of tires on an irregular and noncontinuous basis. A tire dealer does not pay the new tire fees or the tire recycling fees on tires sold to a tire wholesaler. If a tire dealer does not know, or cannot ascertain, whether a buyer is a tire wholesaler, the tire dealer should request a written statement from the buyer certifying that the buyer is a tire wholesaler. Form of Certificate. A particular form for the certificate is not required, but it shall: Set forth the buyer's name and address; Contain the buyer's new tire fee or recycling fee account number; and Be signed by the buyer or an authorized representative of the buyer. A tire dealer is not required to obtain a certificate for each subsequent purchase by a tire wholesaler. Notwithstanding the provision in Regulation .03 of this chapter, a tire dealer shall keep a certificate for a period of 4 years after the last sale upon which the tire dealer relies upon the certificate to avoid the payment of the new tire fee or the tire recycling fee. A certificate does not relieve a tire dealer from paying new tire fees or tire recycling fees unless the certificate is accepted in good faith. A tire dealer who knows or should know that a buyer is not a tire wholesaler is required to pay the fees on tires sold to that buyer without regard to any certificate which that buyer may provide. Buyers of tires who are not tire wholesalers do not have the option of buying tires free of new tire fees or tire recycling fees and paying the fees directly to the Comptroller. A seller of new tires in the State is required to keep, for a period of 4 years, unless permission is obtained from the Comptroller to destroy the records after a shorter period of time, all records in connection with the sale of new tires in the State. The records shall be adequate to distinguish a first sale of a new tire in the State by a tire dealer from all other sales of new tires in the State. This requires keeping all invoices, bills of lading, purchase orders, sales slips, cash register tapes, invoices, contracts, billing slips, journals, ledgers, inventory records, bank records, and tire wholesaler certificates upon which the dealer has relied. A seller of new tires in the State is required to make records available for inspection and examination by the Comptroller or authorized representative at any time during business hours. If a seller of new tires in the State fails to keep the records required, the Comptroller may compute any new tire fees or tire recycling fees which are due by using a factor that the Comptroller develops by: A survey of the business of the seller including any available records; A survey of other sellers of new tires engaged in the same or similar business; or Other means. If the seller of new tires in the State fails to keep the records required, the computation of the new tire fee and the tire recycling fee under § D of this regulation is presumptively correct. Filing Requirements. A person who is responsible for paying the new tire fee or the tire recycling fee on tires sold during the course of a month shall file with the Comptroller a return reporting those sales, accompanied by payment of the new tire fee and the tire recycling fee, by the 21st day of the succeeding calendar month. Filing Basis. If the Comptroller determines from an application for a new tire fee account or tire recycling fee account, previous reporting history, or through audit that a person subject to the tire recycling fee and new tire fee is expected to remit less than $750 per month in total fees, the Comptroller may assign that person a filing basis that is less frequent than monthly. A person assigned a filing basis which is other than monthly shall notify the Comptroller whenever that person has reason to believe that future new tire fee or tire recycling fee payment obligations will average more than $750 in total fees per month. A person assigned a filing basis which is less frequent than four times per year, shall file with the Comptroller a supplemental return for any month, other than the month or months for which scheduled returns are due, in which fees due for that month exceed $750. This return, which is due by the due date set forth in § A of this regulation, shall also encompass any previously unreported fees accrued since the person's most recently filed return. Filing of this return does not affect a person's liability to file the next scheduled return. The Comptroller shall make the tire fee return available to registrants, either electronically or by mail, well in advance of due dates. The failure to receive a return from the Comptroller does not, however, alter a person's obligation to file on time. A person who has not received a return from the Comptroller far enough in advance of the due date to avoid a late filing shall request an additional form from the Comptroller or file a signed schedule providing the information normally required on a return, together with the fees due, on or before the due date. A person registered with the Comptroller for the new tire fee or the tire recycling fee shall file returns in accordance with that person's filing schedule, even if fees are not due. Late Charges. Statutory late charges, as provided in the Tax-General Article, § 13-601(a), 13-604, 13-701(a), and 13-708, Annotated Code of Maryland, are applicable to a person who files a return without payment in full or after the due date specified for the return. The Comptroller is authorized to abate late charges for cause shown. The Comptroller shall consider a record of timely filing of returns as cause shown for abating late charges on one occurrence during any 12-month period, absent evidence of other noncompliance during this period. Abatements shall be made by the Comptroller without a request if qualification can be determined on an automated basis. A person whose late charges have been waived on the basis of a previous record of timely filing is expected to take whatever steps are necessary to file subsequent returns on time. A second abatement of late charges during any 12-month period may not be authorized in the absence of a clear showing of cause relating to that return alone. The fact that late charges might have been abated on the first late return, for reasons other than a previous good filing record, is not relevant to this determination. A person may appeal an assessment by applying for a hearing. The hearing process is governed by COMAR 03.01.01.04. Environment Article, §9-228; Transportation Article, §22-421, Annotated Code of Maryland Effective date: March 30, 1992 (19:6 Md. R. 670) Regulation .01B amended effective May 2, 2022 (49:9 Md. R. 529), March 16, 2026 (53:5 Md. R. 243) Regulation .02 amended effective March 16, 2026 (53:5 Md. R. 243) Regulation .03D, E amended effective March 16, 2026 (53:5 Md. R. 243) Regulation .04 amended effective March 16, 2026 (53:5 Md. R. 243) Regulation .05 repealed and new Regulation .05 adopted effective January 14, 1999 (26:1 Md. R. 22) Regulation .06 repealed effective January 14, 1999 (26:1 Md. R. 22)