Lead-Acid Battery Fees Guide

Helping your business succeed is important to the California Department of Tax and Fee Administration (CDTFA). This guide is provided to help you better understand the fee obligations specific to lead-acid batteries and provides detailed information for dealers, manufacturers, importers, and purchasers of lead-acid batteries in California. For the purposes of this guide, a dealer of lead-acid batteries is referred to as a retailer. CDTFA is responsible for the administration of the lead-acid battery fees in cooperation with the Department of Toxic Substances Control (DTSC).

The lead-acid battery fees generally apply to batteries typically designed for use in a vehicle*, watercraft, aircraft, or equipment, and are primarily composed of both lead and sulfuric acid (liquid, solid, or gel), weighing over 5 kilograms (about 11 pounds), with a capacity of 6 or more volts. The definition of lead-acid batteries can be found on the Dealers/Retailers and Manufacturers tabs.

*Vehicle generally includes any device or machine which can be used to move persons or property, including but not limited to, watercraft, aircraft, or any vehicle as defined in Vehicle Code section 670 or 36000.

Purchases and sales of lead-acid batteries are subject to the below separate fees:

  • California Battery Fee
    The fee is imposed on the purchaser of a replacement lead-acid battery, which the retailer collects from the purchaser.
  • Manufacturer Battery Fee
    The fee is imposed on the manufacturer or importer (when there is no manufacturer subject to the jurisdiction of California) on its sales of lead-acid batteries.

Please note: On April 1, 2022, both battery fees increase from $1.00 to $2.00.

If you purchase lead-acid batteries in California or if you are a dealer, retailer, manufacturer, or importer of lead-acid batteries sold in California, you will be affected by one or both fees.

Retailers are required to:

  • Register with CDTFA for a California battery fee account.
  • Collect the California battery fee from purchasers. Dealers may retain 1.5 percent of the fees collected as reimbursement for any costs associated with the collection of the fee. This fee, including the dealer reimbursement, is not subject to sales or use tax.
  • File the California battery fee return and remit the fee to CDTFA.

If you are a retailer that imports batteries into California, from a manufacturer that is not subject to the jurisdiction of California, you are considered an importer and liable for the manufacturer battery fee. You are responsible for the manufacturer battery fee as well as the California battery fee. Manufacturers or importers are required to:

  • Register with CDTFA for a manufacturer battery fee account.
  • File the manufacturer battery fee return and pay the manufacturer battery fee to CDTFA.

If you are a manufacturer or importer (who purchases from a manufacturer not subject to California jurisdiction) of lead-acid batteries that makes retail sales directly to purchasers in California, you are responsible for the California battery fee as well as the manufacturer battery fee.

Manufacturers or Importers are required to:

  • Register with CDTFA for a manufacturer battery fee account.
  • Pay the manufacturer battery fee
  • File the manufacturer battery fee return and remit the fee to CDTFA.

A manufacturer not subject to California jurisdiction may enter into a written agreement with an importer to pay the manufacturer battery fee on behalf of the importer. You are required to:

  • Register with CDTFA for a manufacturer battery fee account.
  • Pay the manufacturer battery fee
  • File the manufacturer battery fee return and remit the fee to CDTFA.

How the Revenue is Used

Funds from these fees are used by DTSC for the investigation, site evaluation, cleanup, removal, monitoring, or other response actions at any area in the state that may have been contaminated by the operation of a lead-acid battery recycling facility.

For specific information on how the funds are used, visit HSC section 25215.5.

How to Use This Guide

The Getting Started provides key resources related to registration, filing returns, account maintenance, and other important information you need.
The Dealers/Retailers section provides important information for retailers that sell lead-acid batteries in California.
The Manufacturers section provides important information for manufacturers or importers (when there is no manufacturer subject to the jurisdiction of California) that sell lead-acid batteries in California.

The Industry Topics section contains additional information regarding the fee that may be helpful to retailers and manufacturers of lead-acid batteries.

The Resources section provides links to additional information and resources.

If You Need Help

If at any time you need assistance with topics included in this guide – or with topics not included – feel free to contact us by telephone or email. Contact information and hours of operation are available in the Resources section.

If you have suggestions for improving this guide, please contact us via email.

If you are a dealer, manufacturer, or importer of lead-acid batteries sold in California or you purchase replacement lead-acid batteries in California, you will be affected by one or both lead-acid battery fees. For the purposes of this guide, a dealer of lead-acid batteries is referred to as a retailer.

Depending on your business operations, you may be required to register for both types of lead-acid battery fee accounts.

Retailers that sell new replacement lead-acid batteries at retail in California are required to register for, collect, file, and pay the California battery fee to the California Department of Tax and Fee Administration (CDTFA). Retailers may retain 1.5 percent of the California battery fee collected from consumers as reimbursement for their costs of collection. Amounts collected from consumers for this fee are not subject to sales or use tax. 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.

Manufacturers or Importers that sell lead-acid batteries to a dealer, wholesaler, distributor or other person for retail sale in California or sell directly to consumers, are required to register for, file, and pay the manufacturer battery fee to CDTFA. Manufacturers that make retail sales of lead-acid batteries in California are also required to register for, collect, file, and pay the California battery fee to CDTFA.

Manufacturers without jurisdiction in California who agree in writing with the importers to pay the manufacturer battery fee on behalf of the importers must register, file, and pay the fee to CDTFA. Importers are still required to register and file with CDTFA even when there is an agreement in writing for a manufacturer to pay the fee on their behalf.

If you make retail sales of lead-acid batteries in California, you will also need a seller's permit or certificate of registration – use tax account with CDTFA.

Registration

Register online with us for a lead-acid battery fee account(s), a seller's permit, or any other permit, license, or account with CDTFA, visit our Online Services webpage for a list of information you may need to complete your registration.

Filing Returns

Retailers and manufacturers (or importers) that sell lead-acid batteries in California are required to electronically file a separate return for the California battery fee and/or manufacturer battery fee, as appropriate, on a quarterly basis with CDTFA. The lead-acid battery fee returns are separate from the sales and use tax return or other returns or reports you may have with CDTFA. Lead-acid battery fee returns are due on the last day of the month following the reporting period. You must file a return even if no amount is owed.

File a Return Online – File your return through our online services homepage. Log in using your username and password and select the account for which you wish to file a return. Then select the File a Return link for the filing period you wish to file and follow the prompts.

Note: If you do not have a username and password, select the Sign Up Now link under the Create a Username heading from the online services homepage.

Visit our Tutorials page for how to file your Lead Acid Battery returns through our online services.

Returns must be received by the due date to be considered timely, even if no amount is owed. If the due date falls on a Saturday, Sunday, or state holiday, returns received by the next business day will be considered timely.

Changes to your 2022 returns

Your California battery fee and manufacturer battery fee returns are now updated to reflect the new rates as follows:

Yearly filers – Your online return will be split into two reporting periods for calendar year 2022. One section is for the $1.00 rate (January 1, 2022, to March 31, 2022), and the other is for the $2.00 rate (April 1, 2022, to December 31, 2022). This is a one-time change.

Quarterly filers – File your quarterly return as usual.  Any adjustments for returned merchandise or fee-paid purchases resold prior to April 1, 2022, must be made by filing an amended return or filing a claim for refund for the applicable period. You may not make these adjustments for periods prior to April 1, 2022, on your returns after April 1, 2022.

Amended Returns

Retailers and manufacturers may file an amended return online by using the following steps:

  • Login on CDTFA's secure website with your Username and Password.
  • Select the account for which you want to submit an amended return for under the "Accounts" tab.
  • Under the "Recent Periods" tab select the period for which you want to submit an amended return.
  • Under the "I Want To" column select "File, Amend, or Print a Return".
  • Under the "I Want To" column select "Amend Return".
  • Complete the online tax return with your amended figures.
  • Select "Next".
  • Follow the screen prompts to complete the submission process.

If you are unable to amend your return electronically, use the following steps:

  • Write "AMENDED RETURN" at the top of the return.
  • Write in the correct information that should have been reported on the original return. Use a different color ink to distinguish from the original information if you are using a copy of a previously filed return.
  • Attach a cover letter explaining the changes made to the original return.
  • Make a copy of the amended return for your records.
  • Mail all documents, including any additional payment owed, to:
    California Department of Tax and Fee Administration
    PO Box 942879
    Sacramento, CA 94279-7072

If the amended return results in an overpayment, the amended return will be treated as a claim for refund.

Make a Payment – Make payments through our online services homepage. Log in using your username and password and select the account for which you wish to make a payment. Select the More link under the I Want To section. Then select the Make a Payment link and follow the prompts.

Additional Payment Options – Visit our website for additional convenient payment methods.

Electronic Funds Transfer (EFT) - Taxpayers with an estimated average monthly fee liability of $20,000 or more are required to pay amounts due by electronic funds transfer (EFT). We will notify you in writing if you are required to pay your fees electronically. Please visit our Electronic Funds Transfer (EFT) - Frequently Asked Questions (FAQ's) for payment methods and payment deadline information.

Payments must be received or postmarked by the due date to be considered timely. If the due date falls on a Saturday, Sunday or state holiday, payments postmarked or received by the next business day will be considered timely.

Fee Rates

Please visit our Tax and Fee Rates page to view the fee rates.

Recordkeeping

Records must be retained for at least four years from the time the fee is due unless CDTFA gives you written authorization to destroy them sooner. For additional information regarding record retention, please view Regulation 4901.

Manufacturers & Importers -Recordkeeping requirements for manufacturers without jurisdiction in California who agree in writing with the importer to pay the manufacturer battery fee on the importer's behalf can be found on the Manufacturers Tab.

Update Business Information Online – Update your business information through our online services homepage. Log in using your username and password and select the account for which you want to update. Select the More link under the I Want To section. Then select the option you are requesting to update under Account Maintenance.

Additional Business Update Options – You may also notify us of any changes by:

  • Using form CDTFA-345-SP, Notice of Business Change, Special Taxes and Fees Accounts, or
  • Contacting our Customer Service Center at 1-800-400-7115 (CRS: 711) and selecting the option for "Special Taxes and Fees," or
  • Sending a message through our website at Email Your Tax Questions.

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 Tab.

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

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.

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.

  • 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)

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

Below are the fee rates for the applicable periods:

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

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.

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.

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.

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.

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.

Retailers must accept up to 6 used lead-acid batteries of the same type from one person without charging a fee to accept 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.

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.

A lead-acid battery manufacturer is the person who manufactures the lead-acid battery and who sells, offers for sale, or distributes the lead-acid battery in California. If the manufacturer is not subject to California jurisdiction, the person who imports the lead-acid battery into California for sale or distribution is considered the manufacturer and is responsible for the manufacturer battery fee. Retailers who import batteries into California, purchased from out-of-state manufacturers who are not subject to the jurisdiction of California, are required to register for, file, and pay the manufacturer battery fee, as well as obtain a California battery fee account and pay the appropriate fee.

Manufacturers of lead-acid batteries are required to pay a manufacturer battery fee on each lead-acid battery sold to a person at retail in California, or that it sells to a dealer, wholesaler, distributor, or other person for retail sale in California. For the purposes of this guide, a dealer of lead-acid batteries is referred to as a retailer.

Manufacturers who make retail sales of lead-acid batteries in California directly to consumers, such as a sale through a sales outlet, catalog, internet website, or any other similar means, must also register as a retailer for the California battery fee account, collect, and pay the California battery fee to CDTFA. See the dealers/retailers tab for more information.

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

Effective January 1, 2020, manufacturers not subject to California jurisdiction 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 lead-acid 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.

Effective January 1, 2020, importers who are responsible for the manufacturer battery fee may agree, in writing, for the manufacturer not subject to California jurisdiction, 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.

The manufacturer battery fee applies to the sale of new lead-acid batteries primarily composed of both lead and sulfuric acid (liquid, solid, or gel) 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 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.
  • 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.

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.

  • A sale of a battery where the manufacturer 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)).

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

Below are the fee rates for the applicable periods:

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

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

Manufacturers shall place a recycling symbol and additional information, as specified in HSC section 25215.65, on all replacement lead-acid batteries sold in California by July 1, 2017.

**Note: The Department of Toxic Substances Control (DTSC) is responsible for administering and enforcing the recycling symbol requirements. Any questions regarding these items should be directed to DTSC.

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.

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.

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.

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 Tab for additional retailer requirements. The amount charged for the deposit is generally subject to sales tax.

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.

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.

  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.

  1. 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.

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 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).

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.

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

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 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.

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.

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.

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.

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 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.

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 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.

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

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

Need to know more? Follow the links below for more information about the topics covered in this guide, as well as other information you might find helpful:

Laws and Regulations

Notices

Newsletters

Related Industry, Tax, or Fee Guides

Related Websites

California Department of Toxic Substances Control

Additional Sources

Other Helpful Resources

  • Contact Us – A listing of California Department of Tax and Fee Administration (CDTFA) contacts for your questions and concerns.
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  • Special Notices – CDTFA special notices are issued whenever there is a change in law, tax rates, or CDTFA procedures.
  • CDTFA Online Services – Learn about the online services CDTFA offers.
  • CDTFA Field Offices – A comprehensive listing of all CDTFA offices and contact information.
  • Get It In Writing! – Tax and Fee Laws can be complex, and you are encouraged to put your tax questions in writing. You may also send your request in a letter to: Program Administration Branch, MIC; 31, California Department of Tax and Fee Administration, , P.O. Box 942879, Sacramento, CA 94279-0031.
  • Taxpayers' Rights Advocate (TRA) – The TRA Office helps taxpayers when they are unable to resolve a matter through normal channels, when they want information regarding procedures relating to a particular set of circumstances, or when there are apparent rights violations.