|(a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Dealer--A wholesaler, retailer, or any other person
who sells or offers to sell lead-acid batteries.
(2) Lead-acid battery--Any battery, new or used, which
contains lead and sulfuric acid, in liquid or gel form.
(3) Sale for resale--A sale of a lead-acid battery
to a purchaser for the purpose of reselling the battery in the normal
course of business in the form or condition in which it is acquired
(i.e., as a separate item). A sale of a battery that is attached to
or becomes an integral part of a vehicle, boat, or other equipment
that is being sold, rented, or leased is not a sale for resale. The
battery sales fee is due on the sale prior to the battery becoming
a part of this equipment.
(b) Collection and remittance of the fee.
(1) Except as provided in subsection (h) of this section,
a dealer must collect the fee on each sale of a lead-acid battery.
For each lead-acid battery with a capacity of less than 12 volts,
the fee is $2.00. For each lead-acid battery with a capacity of 12
or more volts, the fee is $3.00. A fee shall not be charged, collected,
or allowed as an offset on a battery taken as a trade-in.
(2) If a dealer fails to collect the fee required in
paragraph (1) of this subsection, the comptroller may collect the
fee from the purchaser.
(3) The fee is not due on the sale of a vehicle, boat,
or other equipment that has a battery as an integral part of it.
(4) The amount of the fee due must be separately stated
on the invoice, bill, or contract to the customer and shall be identified
as the Texas battery sales fee.
(5) A dealer may not advertise, make public, indicate,
or imply that the dealer will absorb, assume, or refund any portion
of the fee.
(c) Due date and reporting requirements.
(1) Monthly filing. The battery sales fee is due and
payable on or before the 20th day of the month following the end of
each calendar month. Returns must be filed on a monthly basis unless
a dealer qualifies as a quarterly filer under paragraph (2) of this
(2) Quarterly filing. A dealer who owes an average,
as computed for the year, of less than $50 for a calendar month or
less than $150 for a calendar quarter is required to file a return
and remit the collected fees on or before the 20th day of the month
following the end of the calendar quarter. The comptroller will notify
a dealer when the report and payment may be submitted quarterly.
(d) Report forms. The battery sales fee is to be reported
on the Texas battery sales fee report form as prescribed by the comptroller.
The fact that the dealer does not receive the form or does not receive
the correct form from the comptroller for the filing of the return
does not relieve the dealer of the responsibility of filing a return
and remitting the fee.
(e) Remittance of the fee.
(1) On or before the 20th day of the month following
each reporting period, every person required to collect the fee shall
file a consolidated return for all businesses operating under the
same taxpayer number and remit the total fee due.
(2) The returns must be signed by the dealer required
to file the return or by the dealer's duly authorized agent.
(f) Discount. A dealer who is required to collect the
battery sales fee may retain $.025 from each sale made.
(g) Records required.
(1) Invoices or other records must be kept for at least
four years after the date on which the invoices or records are prepared.
(2) The comptroller or an authorized representative
has the right to examine any records or equipment of any person liable
for the fee in order to verify the accuracy of any return made or
to determine the fee liability in the event no return is filed.
(1) Sales for resale are not subject to the fee.
(2) The sale of a battery that under the sales contract
is shipped to a point outside Texas is not subject to the fee imposed
by this section if the shipment is made by the seller by means of:
(A) the facilities of the seller;
(B) delivery by the seller to a carrier for shipment
to a consignee at a point outside this state; or
(C) delivery by the seller to a forwarding agent for
shipment to a location in another state of the United States or its
territories or possessions.
(3) Exports beyond the territorial limits of the United
States are not subject to the fee. Proof of export may be shown only
(A) a copy of a bill of lading issued by a licensed
and certificated carrier showing the seller as consignor, the buyer
or purchaser as consignee, and a delivery point outside the territorial
limits of the United States;
(B) documentation provided by a licensed United States
customs broker certifying that delivery was made to a point outside
the territorial limits of the United States;
(C) formal entry documents from the country of destination
showing that the battery was imported into a country other than the
United States. For the country of Mexico, the formal entry document
is the pedimento de importaciones document with a computerized, certified
number issued by Mexican customs officials;
(D) a copy of the original airway, ocean, or railroad
bill of lading issued by a licensed and certificated carrier which
describes the items being exported and a copy of the freight forwarder's
receipt if the freight forwarder takes possession of the property
in Texas; or
(E) a purchaser's blanket maquiladora exemption certificate
and a copy of the purchaser's maquiladora export permit provided to
the seller as required under §3.358 of this title (relating to
(4) There is no exemption provided for any organization
or governmental agency, except as provided in paragraph (5) of this
(5) The United States, its instrumentalities, and agencies
are exempted from the battery sales fee.
(6) Sales for disposal or reclamation are not subject
to the fee.
(7) The battery sales fee does not apply to a sale
of a battery made by a dealer when it meets all of the following criteria:
(A) the ampere-hour rating of the battery is less than
(B) the sum of the dimensions of the battery (height,
width, and length) is less than 15 inches; and
(C) the battery is sealed so that no access to the
interior of the battery is possible without destroying the battery.
(i) Replacements covered by a warranty or service contract.
(1) The replacement of a battery under a manufacturer's
warranty, without an additional charge to the purchaser, is not the
sale of a battery to the purchaser. This replacement, therefore, is
not subject to the fee. If there is a charge to the customer for the
replacement (such as a pro rata warranty adjustment), then the customer
must pay the battery sales fee.
(2) The replacement of a battery under an extended
warranty or a service contract, for which the customer pays an extra
charge, depends on the terms of the contract.
(A) If the replacement is free of charge to the customer,
the dealer is responsible for paying the fee.
(B) If there is a charge to the customer for the replacement,
the customer must pay the fee.
(j) Penalty. A person who does not file a report as
provided by this section, or who possesses a fee collected or payable
under this section and does not timely remit the fee to the comptroller,
shall pay a penalty of 5.0% of the amount of the fee due and payable.
If the person does not file the report or pay the fee before the 30th
day after the date on which the fee or report is due, the person shall
pay a penalty of an additional 5.0% of the amount of the fee due and
(k) Interest. Interest accrues on the unpaid fee due
beginning 60 days after the due date and ends the day on which the
fee is paid.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be within the agency's authority to
|Source Note: The provisions of this §3.711 adopted to be effective April 28, 1992, 17 TexReg 2779; amended to be effective October 14, 1993, 18 TexReg 6744; amended to be effective October 12, 2004, 29 TexReg 9555; amended to be effective February 18, 2007, 32 TexReg 537; amended to be effective May 4, 2020, 45 TexReg 2886