The tire fee applies to sales of new tires in Tennessee, regardless of the purchaser’s state of residence. However, a dealer is not liable for the fee for tires sold for delivery outside of Tennessee. For example, a Kentucky resident purchases tires and takes possession of the tires in Portland, Tennessee, the fee applies. However, if Kentucky resident purchases the tires from the Portland, Tennessee retailer and said retailer ships the tires to Kentucky, the fee will not apply.
Reference: Tenn. Code Ann. § 67-4-1603.