Connecticut State Department of Revenue Services

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This information is not current and is being provided for reference purposes only

TSSN-39

Special Notice Concerning Battery Deposit

Obsoleted by  1998 Conn. Public Acts 110, §5. See Conn. Gen. Stat. §12-407(a)(8)(B)(ix)
Effective October 1, 1990, in accordance with Public Act 90-248, Section 3, each person who purchases a lead acid or motor vehicle battery shall be assessed a $5.00 deposit for each new battery. A retailer of lead acid or motor vehicle batteries shall give a trade-in credit of $5.00 to the purchaser of a new battery if a used battery is returned to the retailer at the time of purchase or shall give a refund of $5.00 if a used battery is returned with a sales receipt within thirty days of the purchase date.

Because the $5.00 deposit received accrues to the retailer, the Department of Revenue Services deems the deposit to be a part of the total gross receipts of the sale of the battery. The Sales and Use Tax is computed on the total gross receipts of the sale including the $5.00 deposit before the trade-in credit or refund is applied.

Example 1 - In the event that a customer purchases a new battery without returning a used battery at the time of purchase or within 30 days of the purchase date:

$40.00
total gross receipts of the sale including the $5.00 deposit
3.20
Sales and Use Tax
43.20
gross receipts and sales tax

Example 2 - In the event that a used battery is traded in at the time of sale:

$40.00
total gross receipts of the sale including the $5.00 deposit
3.20
Sales and Use Tax
43.20
gross receipts and sales tax
-5.00
trade-in credit
38.20
charge to customer

Example 3 - In the event that a used battery is returned to the retailer with a receipt within 30 days from the date of purchase, the customer shall receive a $5.00 refund:

$40.00
total gross receipts of the sale including the $5.00 deposit
3.20
Sales and Use Tax
43.20
gross receipts and sales tax
-5.00
refund
38.20
net cost to customer

PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Web home page. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.

TSSN-39 (New 12/90)