SACRAMENTO, Calif. (Jan. 3, 2005) — Californians are paying more for tires as a law raising the new-tire fee to $1.75 from $1 per tire went into effect Jan. 1.
The 75-cent hike is funding the California Air Resources Board's air pollution reduction programs while $1 continues to go to the state's tire fund. The fee will be lowered to $1.50 in 2007, reducing the share given to air pollution prevention programs to 50 cents. On Jan. 1, 2015, the fee will be reduced again to 75 cents per tire.
State officials justified the need for the fee increase to air pollution caused by airborne tire rubber, according to Terry Leveille, lobbyist for California's two state tire dealer associations.
In addition, the passage of bill AB923 also reduces the amount tire dealers retain for tire collection costs to 1.5 percent from 3 percent.