FET exclusion for tire tax

FET is the subject of many member questions. With FET composing 12% of the retail sales price on a taxable item, it is important for the seller to correctly calculate the tax. A key concern involves how to handle the tire tax credit when determining FET to be collected on a truck chassis or trailer chassis. Much confusion stems from lack of information on how much FET has been collected on the tire, since this is a tire manufacturer requirement.