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BTLG Table of Contents > Lead-Acid Battery Recycling Regulations > Regulation 3240

Lead-Acid Battery Recycling Regulations

Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes
(State Board of Equalization — Business Taxes — See Chapters 6 and 9.9)
Chapter 8.2 Lead-Acid Battery Fees

Regulation 3240

Regulation 3240. Written Certification

Reference: Sections 25215.25 and 25215.35, Health and Safety Code.

(a) In General.

(1) If a lead-acid battery is sold or will be used in a manner or for a purpose excluding it from the manufacturer battery fee, as described in subdivision (c)(2) through (5) of Regulation 3220, the manufacturer must obtain written certification from the purchaser that the lead-acid battery will be used in a manner or for a purpose entitling the manufacturer to regard the purchase as not subject to the manufacturer battery fee. If a written certification is timely taken from the purchaser in proper form as set forth in subdivision (b) and in good faith, the manufacturer is not required to pay a manufacturer battery fee on the sale of that battery.

(2) If a replacement lead-acid battery is sold or will be used in a manner or for a purpose excluding or exempting it from the California battery fee, described in subdivision (b)(2) through (7) of Regulation 3230, the dealer must obtain written certification from the purchaser that the lead-acid battery will be used in a manner or for a purpose entitling the dealer to regard the purchase as not subject to the California battery fee. If a written certification is timely taken from the purchaser in the proper form as set forth in subdivision (b) and in good faith, the dealer is not required to collect the California battery fee from the purchaser on the sale of that battery.

(3) If a purchaser makes a written certification pursuant to subdivision (b) of this regulation and subsequently sells or uses the battery such that no exclusion or exemption from the requirement to pay or collect the applicable fee(s) applies, the purchaser is liable for payment of the fee(s) to the Department.

(b) Form of Written Certification.

(1) A purchaser may use any written document to certify that a lead-acid battery will be used in a manner or for a purpose entitling the seller to regard the purchase as not subject to the lead-acid battery fees. The purchaser’s written document must include the purchaser’s certification that the lead-acid battery will be used in a manner or for a purpose entitling the seller to regard the purchase as not subject to the lead-acid battery fee(s), the purchaser’s name and address, the signature of the purchaser, the purchaser’s agent, or the purchaser's employee, and the date signed.

(2) The essential elements described in subdivision (b)(1) are the minimum requirements for a purchaser’s written certification. However, in order to preclude potential controversy, a seller should timely obtain from a purchaser a General Exclusion and Exemption Certificate substantially in the form provided in Appendix A of this regulation to document sales of lead-acid batteries that are not subject to the lead-acid battery fees.

(3) A written certification will remain in effect until revoked in writing.

(c) Timely and Good Faith. Written certification will be considered timely if it is given at any time before the seller bills the purchaser for the lead-acid battery, or any time within the seller’s normal billing and payment cycle, or any time at or prior to delivery of the lead-acid battery to the purchaser. In absence of evidence to the contrary, a seller will be presumed to have taken a written certification in good faith if the certification contains the essential elements as described in subdivision (b)(1) and otherwise appears to be valid on its face.

(d) Blanket General Exclusion and Exemption Certificate. A purchaser may issue a blanket General Exclusion and Exemption Certificate that applies to all of its purchases and provides a general description of the lead-acid batteries to be purchased from a seller that are not subject to the manufacturer battery fee and/or the California battery fee. If such a purchaser subsequently issues a purchase order that indicates that the transaction covered by the purchase order is subject to either the manufacturer battery fee or the California battery fee, the blanket General Exclusion and Exemption Certificate does not apply with respect to that transaction. If a purchaser wishes to designate that all lead-acid batteries purchased from a seller are not subject to the lead-acid battery fee(s), the purchaser may state "all batteries purchased from [name of seller]" in the general description field and then check the appropriate box(es) for the applicable fee(s) covered on the General Exclusion and Exemption Certificate provided in Appendix A.

(e) Qualified General Exclusion and Exemption Certificate. If a purchaser wishes to designate on each purchase order whether the batteries being purchased from a seller are subject to an exclusion or exemption, the purchaser should issue a qualified General Exclusion and Exemption Certificate, i.e., one that states “see purchase order” in the space provided for a general description of the property to be purchased on the General Exclusion and Exemption Certificate provided in Appendix A. Each purchase order must then designate whether the property covered by the order is subject to the fee. The use of the phrases ‘not subject to the fee,’ ‘nontaxable,’ or ‘fee = no,’ or similar phrases on a purchase order indicating that the fee is not applicable will be regarded as designating that the property described is not subject to the fee provided the combination of the purchase order and the qualified General Exclusion and Exemption Certificate contain all the essential elements provided in subdivision (b)(1). However, a purchase order where the applicable amount of fee is shown as $0 or is left blank will not be accepted as designating that the property is not subject to the fee, unless the purchase order also includes the phrase ‘not subject to the fee’ or the other phrases described above to designate that the property is not subject to the fee. If each purchase order does not specify or is not issued timely within the meaning of subdivision (c), it will be rebuttably presumed that the property covered by that purchase order is subject to the fee. If a purchase order includes batteries subject to the fee or fees and batteries not subject to the fee or fees, the purchase order must specify which batteries or how many batteries, in the event they are identical, are excluded or exempt from which fee and which batteries or how many batteries, in the event they are identical, are subject to which fee.

(f) Resale Certificates. If a dealer timely takes a resale certificate from a purchaser for the purchase of a replacement lead-acid battery in good faith that contains all the essential elements required by Regulation 1668, the certificate shall satisfy the written certification requirements of subdivision (a)(2) of this regulation with respect to the sale of that battery.

History—New regulation filed April 3, 2024; operative July 1, 2024 (Register 2024, No. 14).