Covered Battery-Embedded (CBE) Waste Recycling Fee Return

General Information

We administer the covered battery-embedded (CBE) waste recycling fee imposed by the Electronic Waste Recycling Act of 2003 (Act) (Public Resources Code [PRC] section 42460, et seq.) in cooperation with the Department of Resources Recycling and Recovery (CalRecycle).

Effective January 1, 2026, the Act requires you (the retailer or lessor) to collect a fee when a new or refurbished CBE product is sold or leased to consumers in California. The consumer (customer) owes the fee on the purchase, but you must collect the fee when you make a retail sale or lease of a CBE product by any means, including in a store, by mail order, or over the Internet. You may keep three percent of the CBE waste recycling fee collected as reimbursement for all costs associated with the fee collection.

Note: If you make an election under PRC section 42464(e) to pay the fee to a vendor on behalf of your customer, then the vendor must register with us and file a CBE waste recycling fee return.

Visit our Tax Rates – Special Taxes and Fees page to view current and historical CBE waste recycling fee rates.

For additional information on the CBE waste recycling fee, visit our Covered Electronic Waste Recycling Fees Guide page.

Filing Requirements

As a retailer or lessor who makes retail sales or leases of CBE products by any means, including in a store, by mail order, or over the Internet, you are required to electronically file a Covered Battery-Embedded Waste Recycling Fee Return, on or before the last day of the month, following the reporting period for which the fees are due. All sales of CBE products from all locations must be reported on one return. (Revenue and Taxation Code [RTC] section 55040) You are required to file a return even if you do not have any reportable activity during the reporting period. If there is an amount due, you must submit payment by the due date of the return. You must keep a copy of the return on the licensed premises for verification by our auditors.

Penalty and Interest

The penalty for filing a late return or making a late payment is 10 percent of the amount due for the period. Interest also applies to late payments for each month or fraction of a month that the payment is late. (RTC section 55042)

Retail Sales or Leases of CBE Products Subject to the Fee

All your retail sales or leases of a new or refurbished CBE product are subject to the CBE waste recycling fee and must be collected by you, unless you pay the fee to a registered vendor and a statement was provided on your customers' invoice that the fee has been paid on their behalf. Please note, sales to the U.S. government are subject to the fee

Refurbished is defined as a covered electronic device, including a CBE product that the manufacturer has tested and returned to a condition that meets factory specifications, is repackaged and labeled as refurbished.

According to PRC section 42463(f)(1), a CBE product is a product containing a battery that is not designed to be easily removed from the product by the user of the product with no more than commonly used household tools. For example, a smartphone from which the battery is not designed to be easily removed by the user would generally be considered a CBE product.

CBE products do not include the following:

A manufacturer is responsible for making determinations regarding which of their products fall within the definition of a CBE product. Retailers should consult with their manufacturer to determine whether specific products meet the statutory definition of a CBE product. For more information on a manufacturer's responsibility, please visit CalRecycle's Manufacturer Information webpage at www.calrecycle.ca.gov/Electronics/Manufacturer/. CDTFA does not have the authority to make CBE product determinations.

Sales Not Subject to the CBE Waste Recycling Fee

The following sales of CBE products are not subject to the fee:

  • Sales for resale.
  • Sales to American Indians on Indian reservations.
  • Sales of products you shipped directly to a location outside California, if the transaction is not subject to California sales or use tax. (Note: If the consumer takes possession of the product in California, the fee applies).

You must maintain records to document any sale not subject to the fee. Review publication 103, Sales for Resale, for information on sales for resale, and publication 101, Sales Delivered Outside California, for information on sales of products shipped directly to locations outside California.

CBE Waste Recycling Fee Return Preparation

Covered Battery-Embedded Product Sales

Do you have any sales or leases of covered battery-embedded (CBE) products for this filing period?

If you sold or leased any CBE products during the filing period, or if you self-consumed any CBE products (for example, CBE products removed from inventory for business or personal use), select Yes, then Next.

If you did not sell, lease, or self-consume any CBE products, select No, then Next.

CBE Products Information

Enter the total number and total sales of new or refurbished covered battery-embedded (CBE) products sold or leased during this filing period. Do not include sales tax in your total sales amount.

Enter the total number of products and total dollar amount of sales of new or refurbished CBE products sold or leased during this reporting period under each appropriate column. On the first column labeled Number of Products (#), you will enter the total number of CBE items (units) sold during this reporting period. On the second column labeled Total Sales of CBE products ($), you will enter the total sales dollar amount of the CBE products sold during this reporting period. All sales and leases of CBE products should be reported whether the CBE product is subject to the fee or not subject to the fee due to an exemption.

Enter the total number and total costs (purchases) of CBE products that were self-consumed (for example, CBE products removed from inventory for business or personal use) during this filing period.

Enter the total number of products and total costs (purchases) of CBE products that were self-consumed during this filing period under each appropriate column (this includes purchases without payment of the CBE waste recycling fee for your own use or withdrawn from inventory for business or personal use, including donated CBE products).

Total CBE products sold, leased, or self-consumed. The system will automatically calculate these fields.

Do you have any CBE products not subject to the CBE waste recycling fee?

If you sold items not subject to the fee, select Yes, then complete the CBE Waste Recycling Fee Exemptions section below.

If all items reported are subject to the fee, select No, then Next.

CBE Waste Recycling Fee Exemptions

Note: Exempt CBE products must be included in your Number of Products (#) and Total Sales of CBE Products ($) reported above.

CBE products sold in interstate or foreign commerce. Enter the number and sales dollar amount of CBE products sold in interstate or foreign commerce.

CBE products sold to other retailers for purpose of resale. Enter the number and sales dollar amount of CBE products sold to other retailers for the purposes of resale.

Other. Enter the number and sales dollar amount of other CBE products that are exempt from the fee.

Other Explanation. Explain why the other CBE products are exempt from the fee.

Total CBE products not subject to the CBE waste recycling fee. The system will automatically calculate these two fields.

CBE Waste Recycling Fee Credit Adjustments—Current Period

Do you have any adjustments to make where the original transaction(s) occurred during this filing period? (fee-paid purchases resold prior to use or returned taxable merchandise)

If you have any adjustments to make where the original transaction occurred during this filing period, select Yes to complete the section below. Adjustments include purchases where you paid the fee and resold or returned the CBE product prior to use.

If you do not have any adjustments to make where the original transaction occurred during this filing period, select No, then Next.

Note: Enter the number of products and sales amount of CBE products for this filing period only. The original transaction must be included in your Number of Products (#) and Total Sales of CBE Products ($) reported on the CBE Products Information Screen.

Fee-paid purchases resold prior to use. Enter the number and sales dollar amount of CBE products for which you previously paid the CBE waste recycling fee when purchasing goods or merchandise and you resold the items to your customer during this filing period.

Returned taxable merchandise. Enter the number and sales dollar amount of CBE products for which you refunded the CBE waste recycling fee to your customers for merchandise returned on sales made during this filing period.

Total current period credit adjustments. The system will automatically calculate these two fields.

CBE products exempt from the fee and credit adjustments for current period. The system will automatically calculate these two fields.

CBE Waste Recycling Fee Calculations

Note: The Department of Resources Recycling and Recovery (CalRecycle) is required to establish the CBE waste recycling fee rate for CBE products subject to the fee.

CBE products with a retail selling price of $1,000 or more will be subject to a fixed fee rate. CBE products with a retail selling price under $1,000 will be subject to a percentage fee rate.

Total CBE products sold, leased, or self-consumed subject to the CBE waste recycling fee. The system will automatically calculate these two fields.

Are any of these CBE products sold or leased at a retail sale price of $1,000 or more per product?

If you have CBE products sold or leased at a retail price of $1,000 or more per product, select Yes, then complete the section below. Note: If you self-consumed any CBE products costing $1,000 or more per product, you should select Yes.

If you don't have any CBE products sold or leased at a retail sales price of $1,000 or more per product, select No.

If yes, enter CBE products sold, leased or self-consumed subject to the fixed fee rate during this filing period.

Enter the number and sales dollar amount of CBE products that were sold or leased at a retail price of $1,000 or more per product.

Fixed fee rate. The system will automatically populate this field.

CBE waste recycling fee due at fixed fee rate. The system will automatically calculate this field.

Are any of the CBE products sold or leased at a retail sale price under $1,000 per product?

If you sold or leased CBE products at a retail price under $1,000 per product, select Yes, then complete the section below. Note: If you self-consumed any CBE products costing less than $1,000 per product, you should select Yes.

If you don't have any CBE products sold or leased at a retail price less than $1,000 per product, select No.

If yes, enter CBE products sold, leased or self-consumed subject to the percentage fee rate during this filing period.

Enter the number and sales dollar amount of CBE products that were sold or leased at a retail price under $1,000 per product.

Percentage fee rate. The system will automatically populate this field.

Fee due at percentage fee rate. The system will automatically calculate this field.

Total number of products and sales reported. The system will automatically calculate these fields.

Subtotal amount of CBE waste recycling fee due. The system will automatically calculate this field.

Click Next to complete the CBE Waste Recycling Fee Credit Adjustment Worksheet—Prior Filing Period.

CBE Waste Recycling Fee Credit Adjustment Worksheet—Prior Filing Period

Do you have any adjustments to make where the original transaction(s) occurred prior to this filing period? (fee-paid purchases resold prior to use or returned taxable merchandise)

If you have credit adjustments for fee-paid purchases resold or returned taxable merchandise where the original transaction occurred prior to this filing period, select Yes and complete Sections A and B.

If you do not have credit adjustments where the original transaction occurred prior to this filing period, select No.

Section A. Credit Adjustment for CBE Products Subject to the Fixed Fee Rate

Complete this section to calculate the credit adjustment for fee-paid purchases resold and returned CBE products, subject to the fixed fee rate, where the original transaction occurred prior to this filing period.

Column 1A. Original Transaction Period. Select the period where the original sale took place from the drop-down calendar. Note: the date must be prior to the current filing period.

Column 2A. Type of Fee Credit. Select the applicable type of fee credit (cost of tax-paid purchases resold or returned merchandise) from the drop-down.

Column 3A. Total Number of CBE Products. Enter the total number of CBE products that were resold or returned with a retail selling price over $1,000.

Column 4A. Fixed Fee Rate. The system will automatically populate this field.

Column 5A. Fee Credit Amount. The system will automatically calculate this field.

Subtotal Section A. The system will automatically calculate this field.

Section B. Credit Adjustment for CBE Products Subject to the Percentage Fee Rate

Complete this section to calculate the credit adjustment for fee-paid purchases resold and returned CBE products, subject to the percentage fee rate, where the original transaction occurred prior to this filing period.

Column 1B. Original Transaction Period. Select the period where the original sale took place from the drop-down calendar. Note: the date must be prior to the current filing period.

Column 2B. Type of Fee Credit. Select the applicable type of fee credit (cost of tax-paid purchases resold or returned merchandise) from the drop-down.

Column 3B. Total Number of CBE Products. Enter the original transaction amount of CBE products, where the retail selling price was over $1,000, subject to the percentage fee rate.

Column 4B. Percentage Fee Rate. The system will automatically populate this field.

Column 5B. Fee Credit Amount. The system will automatically calculate this field.

Subtotal Section B. The system will automatically calculate this field.

Subtotal fee credit adjustment. The system will automatically calculate this field.

3% Reimbursement adjustments. The system will automatically calculate this field.

Total prior period fee credit adjustments. The system will automatically calculate this field.

Excess CBE Waste Recycling Fee Collected

If you collected more covered battery-embedded (CBE) waste recycling fee from your customers than the amount due calculated on your return, enter the difference.

Collecting excess (more) CBE waste recycling fee can occur in the following situations:

  • When the CBE waste recycling fee is applied to a transaction which is not subject to the fee;
  • When the CBE waste recycling fee is applied to an amount in excess of the amount subject to the fee;
  • When the CBE waste recycling fee is computed using a rate higher than the rate imposed by law; or
  • When mathematical or clerical errors result in an overstatement of the CBE waste recycling fee amount due on a billing.

Excess CBE waste recycling fee collected. Enter the difference of excess fee collected. If you did not over collect for this reporting period, enter 0.

Resources