Pepboys Car Battery Core Dispute

nis350 · 10-07-2017, 10:27 AM

I have no issue paying sale tax. The issue is that when I returned the battery core, they only want to refund the charge for the core which was $15, but not the sale tax I paid for the core.

My sale receipt has 2 separate charges, one for the new battery ($98) and one for the core ($15) and I paid sale tax on both. So why am I not getting the sale tax back when I return the core.

some additional info - I purchased the battery via pepboy.com with the option to pay in the store (store pickup). If I select the store install option for the battery which is free, I only get charged for the new battery ($98) plus sale tax. No additional charge for the core or the core sale tax. So why am I not charged for the sale tax for the core in this case?

The real concern is that their system is set up to charge sale tax for the core and exclude the sale tax refund when customers bring back the core. I am sure many customers are NOT aware of this issue. So who keeps the sale tax in this case? This can be a major issue if they do that with all the stores. Consumer fraud for shortchanging customers?

Quote:

Originally Posted by littlejuanito

Core charges are trade-in allowances included in
the selling price of a part. They are designed to
encourage the return of old parts that can be remanufactured.
Auto parts sellers often include a
core charge when they sell parts such as batteries,
water pumps, brake shoes, and alternators.
Example
A seller sells a battery for $54, which includes
a $7 core charge. If the buyer trades
in his or her old battery, the seller will
give the buyer a $7 credit toward the purchase.
How tax applies
How you calculate the taxable selling price of the
part will depend on whether you are selling a new
or used part, or a reconditioned or rebuilt part.
New or used parts
You are liable for tax on the selling price of the
new or used part, including the core charge. Tax
applies to the core charge because the allowance
for the trade-in is considered part of your “payment”
for the sale.
Example
Selling price of new battery $54.00
(includes a $7 core charge)
Tax ($54 x 7%) 3.78
Trade-in allowance - 7.00
Total $50.78

Don't blame the retailer. This is part of the Tax and Revenue Code. Since a battery exchange lowers the price, it is considered part of the payment. Sorry - you are still obligated to pay the sales tax.

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