The charge often called the BC tire tax isn’t actually a tax. It’s the Advance Disposal Fee, an eco-fee added to every new tire sold in British Columbia to fund the province’s scrap tire recycling program run by Tire Stewardship BC. The fee runs from $6.50 for a standard passenger tire up to $35 for large logger and skidder tires, and PST and GST are charged on top of it.
How Much the Fee Is Per Tire
The Advance Disposal Fee is a flat dollar amount per tire. It doesn’t scale with the price of the tire, so a budget all-season and a premium performance tire in the same category carry the same fee. The current rates took effect January 1, 2024:
- Passenger and light truck tires: $6.50 per tire. This category also covers motorcycle, ATV, and free-rolling farm vehicle tires.
- Medium truck tires: $14 per tire.
- Agricultural drive tires: $15 per tire.
- Logger and skidder tires: $35 per tire.
The passenger and light truck rate had held at $5.00 from 2008 until the 2024 increase, which TSBC attributed to rising processing and transportation costs.1Tire Stewardship BC. Tire Recycling Program Information Sheet Rates are set by TSBC, not by the provincial government, though the program operates under a government-approved stewardship plan.2Tire Stewardship BC. Tire Recycling in BC
Which Tire Purchases Trigger the Fee
The fee applies to new tires sold, offered for sale, or distributed in BC, covering pneumatic and solid tires for motor vehicles, farm tractors, trailers, and other equipment.3British Columbia Laws. British Columbia Code BC Reg 449/2004 – Recycling Regulation
It attaches at the point of sale, and that includes tires that come on a new vehicle. Buy a new car with four mounted tires and a spare, and the eco-fee applies to all five. TSBC’s stewardship plan states the fee covers “replacement tires and tires on new vehicles.”4Tire Stewardship BC. Extended Producer Responsibility Plan 2022-2026 Dealerships and tire shops both have to collect it.
Used tires don’t trigger the fee, since TSBC only collects on new sales. Retreaded and recapped tires are also exempt, because the eco-fee was already paid when the casing was originally sold as new.5Government of British Columbia. Extended Producer Responsibility Plan – Tires
Which Tires Are Exempt
Several categories fall outside the program under the Recycling Regulation:
- Bicycle tires. TSBC runs a voluntary bicycle tire recycling program, but no eco-fee is charged.5Government of British Columbia. Extended Producer Responsibility Plan – Tires
- Wheelchair tires and tires for three-wheeled motorized devices used by people with physical impairments.3British Columbia Laws. British Columbia Code BC Reg 449/2004 – Recycling Regulation
- Aircraft and wheelbarrow tires, excluded under Schedule 4 of the regulation.3British Columbia Laws. British Columbia Code BC Reg 449/2004 – Recycling Regulation
- Tires that ordinarily retail for less than $30.
- Specialty tires with tread codes C, E, G, L, or IND in the Tire and Rim Association handbook.
PST and GST on the Eco-Fee
This is the part that surprises most buyers: you pay tax on the fee itself. Because the Advance Disposal Fee forms part of the tire’s purchase price under provincial rules, 7% PST applies to the eco-fee when the tire is a taxable good, in addition to the PST charged on the tire’s base price.
GST works the same way. The Canada Revenue Agency has ruled that the ADF is part of the retail price and attracts GST at the point of sale.6Canada Revenue Agency. GST/HST Rulings Centre On a set of four passenger tires, that means $26.00 in eco-fees plus roughly $3.12 in combined PST and GST on those fees alone. Not a huge amount, but worth knowing before you’re at the counter.
First Nations members purchasing on reserve land are generally exempt from both PST and GST under section 87 of the Indian Act, and that relief extends to the tax charged on the eco-fee.7Canada.ca. GST/HST and First Nations Peoples Whether the eco-fee itself is waived in those transactions depends on TSBC’s own policies, since the fee is collected by a private non-profit rather than levied as a provincial tax.
Where the Money Goes
The eco-fee is not a government tax. Retailers remit it directly to Tire Stewardship BC, not to the Ministry of Finance. TSBC’s stewardship plan states that “no portion of the eco-fees collected directed to government.”4Tire Stewardship BC. Extended Producer Responsibility Plan 2022-2026 Every dollar goes to the recycling program: transportation, processing, administration, community grants, and a reserve fund.8Government of British Columbia. Tire Stewardship BC Annual Report 2024 The PST charged on the fee is a separate matter and does flow to the province through normal PST reporting.
Retailers are required to show the eco-fee as a separate line item on the invoice so you can see exactly what you’re paying.
Free Drop-Off for Your Old Tires
The other side of the fee: getting rid of old tires in BC is straightforward and usually free. TSBC maintains over 2,000 collection locations across the province. When you buy new tires, the retailer must take back one scrap tire for every new tire sold at no additional charge.9Tire Stewardship BC. Infographic – 2024 Highlights of Tire Recycling in BC
For old tires you didn’t swap at a shop, the Return-to-Retailer program is another option. In 2024, 761 participating locations accepted up to four “orphan” tires per visit at no cost, as long as the tires were clean and off the rim. At least 25% of registered collection locations in each regional district took part, so coverage extends into rural areas.9Tire Stewardship BC. Infographic – 2024 Highlights of Tire Recycling in BC TSBC also runs community collection events through the year that accept all tire sizes, on- or off-rim, in residential quantities for free.