This information is not current and is being provided for reference purposes only
TSSN-39
Special Notice Concerning Battery Deposit
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)