taxes

Battery Sales Fee Frequently Asked Questions

What is the battery sales fee?

Texas imposes a fee on the sale of new and used lead-acid batteries. The fee is $3 for each battery of 12 volts or more, or $2 if less than 12 volts.

What is a lead-acid battery?

A lead-acid battery is any battery that contains lead and sulfuric acid (see Health and Safety Code Section 361.138(a)(2)).

Does the fee apply to all sales of lead-acid batteries?

No fee is due on sales of lead-acid batteries that are:

  • purchased for the purpose of reselling the battery as a separate battery and not part of any equipment (a completed Form 01-339, Texas Sales and Use Tax Resale Certificate (front) (PDF), is the seller’s proof the fee is not due);
  • sold to the federal government;
  • rated at less than 10 ampere-hours, sealed to prevent maintenance, and less than 15 inches in total dimensions (height, width and length); or
  • sold to be shipped outside Texas or exported beyond U.S. territorial limits (the Comptroller will only accept the documentation provided in Rule 3.711(g)(2) and (3) as proof of shipment or export).
Is the fee due on the battery that came with my boat?

No. The battery sales fee is not due on the sale of equipment that has a battery attached or as an integral part. The fee is due, however, on the sale of the battery prior to it becoming a part of the equipment.

Is the fee due on flashlight batteries?

No. The battery sales fee is not due on the sale of common household batteries, such as sizes AA, C and D, because they are not lead-acid batteries.

Can the fee be included in the sales price?

No. By state law and Comptroller rule, the seller must separately state the fee and identify it as the Texas battery sales fee. (See Health and Safety Code Section 361.138(c)(1) and Rule 3.711(b)(3).)

If the battery is returned to the seller, does the seller refund the fee?

If the seller refunds the full purchase price, there is no sale, so the purchaser should receive a refund of the battery sales fee and sales tax.

Is the fee due on batteries replaced under a manufacturer's warranty?

The fee is only due when there is a sale of a battery. If there is no charge for the replacement battery, there is no sale of a battery and the fee is not due. Because there is no sale, the seller pays the battery sales fee and sales tax to its supplier. If there is a charge for the replacement battery, the purchaser pays the battery sales fee and sales tax to the seller.

How do I apply to collect the fee?

Send a completed Form AP-160, Texas Questionnaire for Battery Sales Fee (PDF), to the Comptroller's office:

Mail:

Texas Comptroller of Public Accounts
111 E. 17th Street
Austin, TX 78774-0100

Email: misctax.apps@cpa.texas.gov

We do not issue battery sales fee permits.

When is the battery sales fee due?

Sellers who owe less than $50 in battery sales fees in a month, or less than $150 in a quarter, report and remit battery fees quarterly, on the 20th of the month following the end of the quarter. All other battery dealers report and remit the fee monthly, on the 20th of the following month. If the 20th falls on a weekend or holiday, the due date is the next business day. All reports must be postmarked on or before the due date. Use WebFile or Form 66-102, Texas Battery Sales Fee Report (PDF), to report and pay.