Industry Topics for Lead-Acid Battery Fees

For the purposes of this guide, a dealer of lead-acid batteries is referred to as a retailer.

California battery fee - Retailers and manufacturers of lead-acid batteries, that sell replacement lead-acid batteries at retail in California are required to register for, collect, file, and pay the California battery fee. Also, manufacturers that make retail sales directly to consumers in California, are required to register for, collect, file and pay the California battery fee.

Manufacturer battery fee - Manufacturers that sell and ship lead-acid batteries into California are required to register for, file, and pay the manufacturer battery fee. Also, retailers that import batteries into California, purchased from manufacturers that are not subject to the jurisdiction of California, are required to register for, file, and pay the manufacturer battery fee. In addition, manufacturers without jurisdiction in California who agree in writing with the importer to pay the manufacturer battery fee on behalf of the importer must also register, file, and pay the fee to CDTFA.

Manufacturer--Paying on Behalf of Importer

Effective January 1, 2020, manufacturers without jurisdiction in California who agree in writing with the importer to pay the manufacturer battery fee on the importer's behalf must:

  1. Register with CDTFA and file a return indicating the number of lead-acid batteries subject to the manufacturer fee that are being paid for by the manufacturer on the importer's behalf, pursuant to a written agreement.
  2. Provide the importer with a statement on the invoice, contract, or other record documenting the transaction. The statement must include:
    • The manufacturer's CDTFA manufacturer battery fee account number,
    • Identification of the lead-acid battery(ies) sold subject to the fee, and
    • A timely statement that the fee will be paid to CDTFA on behalf of the importer. A statement is considered timely if it is provided to the importer:
      • Before the battery(ies) is billed or delivered,
      • Within the normal billing and payment cycle, or
      • Before the return is due.
  3. Retain sufficient records to document:
    • The battery(ies) was delivered for retail sale in California,
    • The identity of the importer of the lead-acid battery(ies), and
    • That the statement required in #2 above was provided to the importer in a timely manner.
  4. Retain records for at least four (4) years and make them available to CDTFA upon request.

Importer--Manufacturer Paying on Your Behalf

Effective January 1, 2020, importers who are responsible for the manufacturer battery fee may agree, in writing, for the manufacturer without jurisdiction in California, to pay the manufacturer battery fee on behalf of the importer. The importer must:

  1. Register with CDTFA and file a return indicating the number of lead-acid batteries subject to the manufacturer fee that are being paid for by the manufacturer on the importer's behalf, pursuant to a written agreement.
  2. Receive from the manufacturer a statement on the invoice, contract, or other record documenting the transaction that includes:
    • The manufacturer's CDTFA manufacturer battery fee account number
    • Identification of the lead-acid battery(ies) sold subject to the manufacturer battery fee
    • A timely statement that the manufacturer will pay fee to CDTFA on behalf of the importer. A statement is considered timely if it is provided to the importer:
      • Before the battery(ies) is billed or delivered,
      • Within the normal billing and payment cycle, or
      • Before the return is due.
  3. Retain sufficient records to document:
    • The battery(ies) was delivered for retail sale in California,
    • The identity of the manufacturer of the battery(ies), and
    • That the statement required in #2 above was provided to the importer in a timely manner.
  4. Retain records for at least four (4) years and make them available to CDTFA upon request.

The importer remains liable for the fee if the manufacturer does not pay.

Refundable Deposit (Core Charge)

Retailers must charge a separately stated refundable deposit (amount not specified) each time a consumer purchases a new replacement lead-acid battery, regardless of whether the consumer provides a used lead-acid battery, of the same type and size, to the retailer at the same time. See the Retailer Section for additional retailer requirements. The amount charged for the deposit is generally subject to sales tax.

Battery Returned by Customer

If a customer returns a battery and receives a full refund from the battery retailer, the entire amount paid for the battery, including the California battery fee, should be refunded to the customer.

Invoices

Both the California battery fee and the refundable deposit (core charge) must be separately stated on the invoice for all retail sales of lead-acid batteries.

New and Used Vehicle Dealers

  1. New Vehicle Dealers

    Sales of new replacement lead-acid batteries for incorporation into new vehicles, including hybrid cars and tractors, are not subject to the California battery fee or the manufacturer battery fee.

    Effective January 1, 2020, the California battery fee does not apply to a new replacement lead-acid battery installed into a used motor vehicle that is sold or leased by a new motor vehicle dealer.

    The new motor vehicle dealer shall maintain documentation to support its California battery fee exempt sales or leases, such as the Report of Sale or the Motor Vehicle Contract and Security Agreement.

  2. Used Vehicle Dealers

    The California battery fee applies to a new replacement lead-acid battery installed into a used motor vehicle that is sold or leased by a used vehicle dealer.

    When a battery is exchanged or replaced by a new vehicle dealer or a used vehicle dealer during the free replacement period, there is no retail sale; and therefore, no additional California battery fee is due. Documents, such as invoices, must be maintained to support sales of replacement lead-acid batteries that are excluded from the California battery fee, including batteries replaced under warranty (for no charge).

    When a battery is exchanged or replaced during the pro rata replacement period, under a partial or prorated warranty, the transaction is considered a retail sale, and the California battery fee is due.

    Also, any replacement lead-acid batteries sold, at retail, from a new or used vehicle dealer's repair shop or parts counter are subject to the California battery fee.

Auto Repair Shops

An auto repair or body shop is considered a dealer/retailer when they sell new replacement lead-acid batteries at retail to consumers and is responsible to register for, collect, file and pay the California battery fee to the CDTFA.

The California battery fee must be separately stated from any other charges, fees, or refundable deposit (core charge) on the invoice. Retailers may retain 1.5% of the fee as cost reimbursement.

Auto Parts Stores

Auto parts stores are responsible to register for, collect from their customer, file, and pay the California battery fee for all retail sales of lead-acid batteries in this state. Also, retailers that import batteries into California from out-of-state manufacturers, who are not subject to the jurisdiction of California, are also required to register for, file, and pay the manufacturer battery fee.

A manufacturer, wholesale battery distributor or supplier should not pay the California battery fee on behalf of a retailer since the California battery fee is imposed on the retail purchaser (consumer).

Internet, Sales Outlet, and Catalog Sales

Retailers and manufacturers that make retail sales of lead-acid batteries in California directly to consumers, such as through a sales outlet, catalog, Internet website, or any other similar electronic means, must register for, collect, file, and pay the California battery fee. Manufacturers are also responsible for paying the manufacturer battery fee.

Non-profit Organizations

There is no exemption or exclusion from the California battery fee or the manufacturer battery fee for purchases by charities or non-profit organizations.

Native Americans

The California battery fee is not applicable if the sale and delivery of a lead-acid battery to a Native American purchaser occurs on a reservation. For additional information, please see our Tax Guide for Native Americans.

Government Entities

Government entities are subject to both the California battery fee and manufacturer battery fee. The definition of a person who is subject to the fees, includes any city, county, city and county, district, commission, the state, or any department, agency, or political subdivision of any of those, interstate body, and the United States and its agencies and instrumentalities to the extent permitted by law.

New and Used Equipment (vehicles, watercraft, aircraft, tractors or other equipment)

Sales of all lead-acid batteries for incorporation into new equipment, including new cars, hybrid cars, or tractors, are not subject to the California battery fee or the manufacturer battery fee. In addition, lead-acid batteries already incorporated in equipment to be resold are not subject to the California battery fee or the manufacturer battery fee.

However, the sale of a replacement lead-acid battery for incorporation into used equipment such as a used or reconditioned car, is subject to the California battery fee. Please note, effective January 1, 2020, the California battery fee does not apply to a replacement lead-acid battery installed into a used motor vehicle that is sold or leased by a new motor vehicle dealer. See the New and Used Vehicle Dealers section for detailed information.

In addition, a wholesale battery distributor or supplier should not pay the California battery fee on behalf of a retailer since the California battery fee is imposed on the retail purchaser.

Solar or Other Electrical Energy Storage

Per DTSC guidance, the California battery fee does not apply to the sale of a new replacement lead-acid battery for use as stationary storage or as a standby source for either electrical storage for electricity generation equipment, 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, as listed in Health and Safety Code section 25215.1 (e)(3). This includes solar electrical generation and storage systems.

However, there is no exemption or exclusion from the manufacturer battery fee for batteries used for electrical generation or storage systems. The manufacturer battery fee still applies to those batteries intended for use in electrical generation or storage systems.

In addition, refundable deposits (also known as core charges) do not apply to batteries used in electrical generation or storage systems. The DTSC is responsible for administering and enforcing the refundable deposit portions of the law. Any questions regarding these items should be directed to DTSC.

Medical Devices

Lead-acid batteries used in qualifying medical devices as defined by the federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 (h)) and the US Food and Drug Administration are not subject to the California battery fee pursuant to HSC 25215.1(o)(2)(E) or the manufacturer battery fee. View the searchable database for specific medical devices.

Roadside Services, Warranties & Vehicle Service Contracts

Neither the California battery fee nor the manufacturer battery fee apply to the retail sale of a replacement lead-acid battery returned or fully replaced under a manufacturer or dealership warranty, vehicle service contract, or by a roadside service (such as AAA).

When a battery is exchanged or replaced during the free replacement period there is no retail sale and therefore, no additional California battery fee is due. Documents, such as invoices, must be maintained to support sales of replacement lead-acid batteries that are excluded from the California battery fee.

When a battery is exchanged or replaced during the pro rata replacement period, under a partial or prorated warranty, the transaction is considered a retail sale, and the California battery fee is due.

Sales and Shipments for Delivery Outside California

Sales and shipments of lead-acid batteries outside California are not subject to the California battery fee or the manufacturer battery fee. However, documentation must be provided that a lead-acid battery was shipped outside California.

It is presumed that all sales of lead-acid batteries in California or shipped into California are for use in California unless documentation is provided to the contrary. Therefore, all sales of lead-acid batteries into California are subject to both lead-acid battery fees unless documentation is provided that the battery was shipped outside California or otherwise nontaxable (e.g., sales for use in qualifying medical equipment).

A business must keep records to document that the batteries are intended for sale or were shipped and sold outside of California. Such records include exemption certificates, purchase orders, billing statements, receipts, invoices, shipping documents, job orders, contracts, customer representations, or other documents. A seller may also rely on the written representation of the purchaser that the battery is intended for sale in another state or country.

If either lead-acid battery fee has already been paid to the CDTFA, and the lead-acid battery is subsequently shipped outside California, the feepayer should file a Claim for Refund with the CDTFA.

Third Party Shipments into California

Manufacturers, importers, or distributors may be responsible for both the California battery fee and the manufacturer battery fee for sales and shipments of lead-acid batteries in California.

Manufacturer Battery Fee

Manufacturers, subject to California jurisdiction , are responsible for the manufacturer battery fee for all sales and shipments of lead-acid batteries into California. All sales of lead-acid batteries to distributors or importers in California, or to an importer's or distributor's warehouse in California, are subject to the manufacturer battery fee. It is presumed that all shipments of lead-acid batteries into California will be sold in California, unless documentation shows otherwise. The fee does not apply until the retail sale to the consumer, or the sale to a dealer, wholesaler, or another distributor for retail sale in this state. Thus, for example, if a manufacturer shipped lead-acid batteries into California for storage at its warehouse in California because it did not have a purchaser for the batteries, the manufacturer battery fee would not be imposed at the time of shipment because no sale occurred at that time. The manufacturer battery fee would be imposed when the manufacturer sells the battery to another person.

The distributor, importer, retailer, or drop shipper is responsible for the manufacturer battery fee, for all sales and drop shipments into California if the manufacturer does not have jurisdiction in California. The manufacturer battery fee is due at the time of the battery sale.

California Battery Fee

Manufacturers, subject to California jurisdiction, as well as retailers, are responsible for the California battery fee for all retail sales of lead-acid batteries in California directly to consumers, such as through a sales outlet, catalog, Internet website, or any other similar means.

Petitions for Redetermination and Claims for Refund

The Battery is not a Lead-Acid Battery

The Department of Toxic Substances Control is responsible for handling any petition for redetermination or claim for refund based upon the grounds that a battery is or is not a lead-acid battery. You may file a petition or claim for refund with the CDTFA and we will forward the request to the DTSC for response, or you may send your request directly to the DTSC at Fees@DTSC.ca.gov.

Refunds

Only a person who has paid the lead-acid battery fees to the state, or a consumer who has paid a separately stated amount for the California battery fee to a dealer, or a representative of such a feepayer, may file a claim for refund. An importer who has paid the manufacturer battery fee for a lead-acid battery and who subsequently receives an untimely statement that the fee has been paid by the manufacturer for that battery may file a claim for refund for any overpaid fees.

Submit a Claim for Refund – File your claim for refund through our online services homepage. Log in using your username and password and select the account for which you want to claim a refund. Select the More link under the I Want To section. Then select the Submit a Claim for Refund link and follow the prompts.

Additional Claim for Refund Filing Options - You may also file your claim for refund by filing either:

  • A form CDTFA-101, Claim for Refund or Credit, or
  • An amended return(s) stating the specific reason(s) for the overpayment.

Claims for refund must be in writing, state the reason for overpayment, specify the period for which you made the overpayment, and the amount of the refund requested. Additional refund details can be found on our webpage Filing Claims for Refund - Special Taxes and Fees.

You may email the claim form to the Refund Team or mail it to:

California Department of Tax and Fee Administration
Appeals and Data Analysis Branch (MIC 33)
P.O. Box 942879
Sacramento, CA 94279-0033

Time Limit for Filing a Claim for Refund

Be sure to file your claim for refund by the applicable deadline. If you do not file on time, the CDTFA cannot consider your claim even if you overpaid the fee. If you have questions about your deadline to file a refund claim, please contact us.

You must file a claim for refund by whichever of the following dates that occurs last:

  • Three years after the due date of the return on which you overpaid the fee
  • Six months after you overpaid the fee
  • Six months after the date a determination (billing) became final
  • Three years after the CDTFA collected an involuntary payment, such as from a levy or lien