Dealers/Retailers Lead-Acid Battery Fees

A dealer is every person selling new replacement lead-acid batteries directly to purchasers, at retail in California. A dealer includes a manufacturer of lead-acid batteries who makes retail sales directly (in-person or online) to purchasers in California. For the purposes of this guide, a dealer of lead-acid batteries is referred to as a retailer.

Retailers are generally required to collect the California battery fee from purchasers on each replacement lead-acid battery sold at retail, as discussed below. This fee is not subject to sales or use tax.

A marketplace facilitator is considered the seller and retailer for each sale facilitated through its marketplace. Beginning January 1, 2022, a marketplace facilitator must collect the California battery fee from purchasers on each replacement lead-acid battery sold at retail through its marketplace. Please see Assembly Bill (AB) 1402 (Stats. 2021, ch. 421) and our Tax Guide for Marketplace Facilitator Act for more information.

For registration, online filing information, and making payments, please see the Getting Started Section.

Retailers responsible for the manufacturer battery fee

Retailers that import lead-acid batteries into California, that are purchased from a manufacturer not subject to California jurisdiction, must also register for, file, and pay the manufacturer battery fee.

See Manufacturers Section if you are an importer and have an agreement with a manufacturer to pay the fee on your behalf.

Batteries Subject to the California battery fee

The California battery fee applies to sales of new replacement lead-acid batteries primarily composed of both lead and sulfuric acid, whether sulfuric acid is in liquid, solid, or gel form, weighing over five kilograms (about 11 pounds) with a capacity of six or more volts that is used for any of the following purposes:

  • As a starting battery that is designed to deliver a high burst of energy to an internal combustion engine until it starts.
  • As a motive power battery that is designed to provide the source of power for propulsion or operation of a vehicle, including a watercraft.
  • As a source of auxiliary power to support the electrical systems in a vehicle, as defined in section 670 of the Vehicle Code, including a vehicle as defined in section 36000 of the Vehicle Code, or an aircraft.

Note: Lead-acid batteries removed from inventory for self-use are subject to the California battery fee as well as use tax. See our guide on Use Tax.

Replacement Lead-Acid Battery

A replacement lead-acid battery is a new lead-acid battery sold at retail in California that replaces the original battery that came with the vehicle, watercraft, aircraft, or equipment.

Replacement lead-acid batteries do not include spent, discarded, refurbished, reconditioned, rebuilt, or reused batteries which are not subject to the lead-acid battery fees.

The California Battery Fee Does Not Apply to:

  • A sale for purposes of resale, in the regular course of business.
  • A sale of a battery where the California battery fee has already been paid.
  • A replacement lead-acid battery temporarily stored or used in California for the sole purpose of preparing it for use only outside the state and that it is subsequently transported and used solely outside of the state.
  • A battery sold for incorporation into new equipment for subsequent resale.
  • A battery replaced under a vehicle or battery warranty or a vehicle service contract, as defined under section 12800 of the Insurance Code.
  • A battery intended for use with, or contained within, a medical device as defined in the federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 (h)).
  • Any battery used as a stationary storage or standby battery that is designed to be used in systems where the battery acts as either:
    • Electrical storage for electricity generation equipment, or
    • A source of emergency power, or
    • Otherwise serves as a backup in case of failure or interruption in the flow of power from the primary source.
  • Effective January 1, 2020, the California battery fee does not apply to a replacement lead-acid battery installed into a used motor vehicle (as defined in Vehicle Code section 665) that is sold or leased by a new motor vehicle dealer (as defined in Vehicle Code section 426)

Note

  1. A battery replaced under warranty, with no additional cost to the purchaser.

Records to Support an Exemption or Exclusion

A retailer must obtain written certification from the purchaser when a replacement lead-acid battery is sold and will be used in a manner or for a purpose entitling the retailer to regard the purchase as not subject to the California battery fee.

CDTFA-230-L, General Exclusion & Exemption Certificate-For Lead Acid Batteries Not Subject to the Lead-Acid Battery Fees, is available to meet the written certification requirements. The purchaser will owe the fee if we later determine the battery was sold or used in a manner or for a purpose such that no exclusion or exemption from the requirement to pay the fee applies.

Fee Rate

Below are the fee rates for the applicable periods:

  • $2.00 – On and after April 1, 2022
  • $1.00 – Prior to April 1, 2022

Retailer Reimbursement

The retailer may retain 1.5% of the fee collected as reimbursement for any costs associated with the collection of the fee. The remainder of the California battery fee collected by the retailer shall be timely paid to CDTFA.

Excess Fee Collected

When a retailer collects the California battery fee from its customer on the sale of a new replacement lead-acid battery that is not subject to the fee or collects an amount in excess of the fee due, it is considered excess fee collected. When this occurs, the retailer shall return the excess fee collected back to its customer. In the event the retailer cannot or does not return the excess fee collected back to its customer, the retailer is required to report the excess fee collected on its lead-acid battery fee return and remit it to CDTFA.

Self-Consumed Battery

When a retailer purchases a new replacement lead-acid battery without payment of the California battery fee for its own use or withdraws the battery from its resale inventory for business or personal use, the retailer is considered the consumer of that battery, and the California battery fee applies. The retailer can report the fee on their California battery fee return. Additionally, self-consumed batteries may also be subject to use tax, please see our guide on Use Tax for more information.

Refundable Deposit (Core Charge)

Retailers must charge a refundable deposit (amount not specified) each time a consumer purchases a new replacement lead-acid battery, regardless of whether or not the consumer provides a used lead-acid battery to the retailer at the same time. Retailers must refund the deposit if a used lead-acid battery, of the same type and size, is returned within 45 days (HSC section 25215.2).The refundable deposit is subject to sales tax, if applicable. The dealer shall refund the deposit, but not the sales tax, to a person if they return a used lead-acid battery, of the same type and size, within 45 days of the sale of the new replacement lead-acid battery. See CDTFA's Industry Guide on Auto Repair Garages for additional information on the application of sales tax to certain transactions, including core charges (Trade-in allowances).

Note: The Department of Toxic Substances Control (DTSC) is responsible for administering and enforcing the refundable deposit. Any questions regarding the refundable deposit should be directed to DTSC.

Separately State the Fee and Deposit

The California battery fee and refundable deposit must be separately stated on the invoice for all sales of replacement lead-acid batteries. If more than one battery is sold in a single transaction, retailers may combine the fee into a single-line item.

Accept Used Batteries without Charging a Fee

A retailer is required to accept used lead-acid batteries from a person; however, a retailer is not required to accept more than six lead-acid batteries from a person in a single day. A retailer is prohibited from charging a fee to receive a used lead-acid battery. (HSC section 25215.2).

Note: DTSC is responsible for administering and enforcing the acceptance of batteries. Any questions regarding the acceptance of batteries should be directed to DTSC.

Posting Notice

DTSC is responsible for administering and enforcing the notice posting requirements as prescribed in HSC section 25215.2. Any questions regarding the notice posting requirements should be directed to DTSC.