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Costco review: auto battery core charge 11

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8:05 pm EDT
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I went to the Costco fontana store to buy a new car battery for my sons Honda Accord. I even brought with me his old battery so I would not incur a "core" charge. When I went to the check-out line I was confused to learn that the clerk automatically added a 9.00 core charge to the cost of the battery- I was then charged 8.75 % sales tax on the total amount. When I started to question the clerk- she said that I would be refunded the core charge by stopping by the member services counter when exiting the store. After waiting in line another 10-15 minutes another sales clerk took my old battery and gave me a reciept for the 9.00 core charge but did NOT refund the sales tax. While it is only a matter of 78 cents difference- multiply this times the number of car batteries this store sells in a year.

I have purchase numerous automotive batteries over the years and I have never before been charged sales tax on top of the core charge- In fact the last car battery I purchased at the Azusa Costco- I was given $ 9.85 back in cash.
I intend to pursue this matter with someone from Costco management, however I wanted to bring this issue to everyone's attention.

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Nelson Ge
, US
Dec 27, 2015 8:02 pm EST

I got the same core tax experience at Costco in Azusa. I bought a new battery, paid core charge, $15 + tax . Took the new battery to my car in the parking lot, replaced the old battery, and rolled the old battery back to the tire center 15 minutes later. I got my $15 back, but not the $1.35 tax on that $15. I asked the clerk why I didn't get the tax back. He swore he was right in not refunding the tax, but the reason is total nonsense. Since my time arguing with him would have cost way more than $1.35, I just let it go. I just consider it another one of those live-in-California tax.

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RobStl
Wildwood, US
Jan 26, 2015 11:29 pm EST

I had the exact same experience yesterday at the Costco in Manchester, MO. On Saturday, I bought a new Interstate battery and was charged a $15 core charge. On Sunday, I returned under warranty the Kirkland battery I bought in 2009. I was refunded 40% of the 2009 battery price plus the 2009 $9 core charge. I said that was wrong, i was refunded that $9 fee in 2009 when I returned my old battery. I had three different Costco employees, including one from the Tire shop, say that was they way they had to do it and that I would get my $15 core fee refunded when I returned the new battery I bought Saturday. This makes no sense and I probably won't have the car another 5 years so it is highly unlikely I will get the $15 fee refunded.

I complained to Costco Customer Service who sent my complaint to a store manager. He told me the same thing, that I could get my $15 core charge refund when I return the new battery years down the road.

I have bought two batteries at Wal Mart in the past few years and they refunded the core charge immediately after charging it because they took out the old battery and put in the new. Something is wrong with Costco.

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Vanzant
Marietta, US
Dec 16, 2014 5:41 pm EST

I sent my wife to SAMS to purchase another battery for her car. My wife had called me and told me the price that the service person quoted and I told her to proceed. The auto department removed the existing battery and installed the new one. When my wife got home I asked for the receipt and I noticed that SAMS had charged a $15.00 core charge. This is an improper charge as they kept the old battery. They also charged tax on the 15.00 core charge. They will be seeing me tomorrow and I will not be very nice.

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boltnut55
SSF, US
Jul 28, 2014 11:48 pm EDT

I'm only putting this info here because I researched it and found that Costco is correctly in not refunding the tax on the core charge even though it makes no logical sense. Here is the official link: http://www.boe.ca.gov/pdf/pub25.pdf It can be found on page 4 of the document, but make sure you view under Sale of New...

We should blame the state, not Costco.

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excostco customer
royal oaks, US
Aug 04, 2013 10:28 am EDT

Same deal as Fontana store except in Santa Cruz and 2 batteries. I'm ok with the core charge but to tax it and not return your tax with the return is taxing for no product or service. When I return anything the tax is always refunded. So what gives? This is not right.

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TamaCara
Fremont, US
Mar 22, 2013 2:14 pm EDT
Verified customer This comment was posted by a verified customer. Learn more

Same story, different Costco store. My husband and I went to the store in Fremont, CA. We had a battery that died before its time and went in there to get the reduced return of the defective battery and a replacement battery. Every employee (both CSR, the front-end manager, the auto dept) we talked to insisted we either get the $9 core charge OR the warranty but not both. Eventually the auto department didn't charge for a new core, but only because they wanted my husband to go away, not because they finally learned the truth. I can't even begin to imagine how much Costco is raking in in unnecessarily charging customers for core charges.

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Disgruntled Customer Number 19,786
Concord, US
Aug 02, 2011 3:13 am EDT

The exact same thing just happened to me except at the Concord store -- same battery, same warranty, same time before failure, same $14 warranty credit, and same refusal to refund my core charge for the failed battery. Oh, and the same runaround and excuses. Much discussion, tempers lost, finally a $9 refund, but just to quiet me down and get me out of the store, not that they ever came to their senses. How hard is it to understand: Battery returned, refund core deposit?

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socalep
Burb, US
Jan 15, 2011 10:28 am EST

I went to the Costco in Van Nuys, CA and brought in my old Kirkland battery, purchased at Costco 5 years ago. It had a 100 month warranty which is remedied by a 40% refund. First I went into the battery & tire shop OUTSIDE the main store, but was told, in order to get my warranty refund, I would have to take the battery into customer service. I got in the customer service line, which I might add was out the door and around the corner, and was a 40 minute wait. The CSR there, after asking several others, finally gave me a $14 refund & said to bring the receipt to the battery shop. So, I went back into the battery shop, got a new battery off the rack, went to the counter and showed my receipt proving Costco has my old battery in possession. The clerk said he has to charge me a $9 core charge. I said again, I just brought the old core in. He said if he doesn't have it in HIS possession in the battery shop, he HAS TO charge me a core charge, but I could bring any used battery back for a $9 refund. Um, ?! I said I returned it BEFORE the purchase, is that not allowed by law or something? He said I had to have a receipt showing I paid the core charge to get it refunded. I said, so all those batteries on the floor, from other manufacturers, you have receipts for? He said yes. I said show me. He then said he saw the receipts that he gave to them for the new purchase, then they brought their old battery in for the refund. I was going in circles with this guy! I said again, I RETURNED THE OLD BATTERY TO THE CUSTOMER SERVICE DESK BEFORE GETTING THE NEW ONE! Then he pulled another excuse out of his hat and said I'm lucky because I got more back ($14) from the warranty than the core ($9) so I should be happy. I said I don't think that the purpose of the core charge is to reward someone for not using the warranty for a battery that went dead before it's time and vice versa. Why should I be penalized because Costco's battery didn't hold up to it's 100 months?! Is this a scam? Can they do this? I asked for a manager. Instead the battery clerk, Bobby, went and got the CSR, Vanacio (sp?) who came in and came up with an even newer excuse. He said because he didn't see I paid a core charge for my previous Kirkland battery, they charged a core charge this time. If that was indeed the case, why didn't he say that in the first place instead of all these different stories? Further, and again, I asked, how do you know all these people paid a core charge on these non Costco batteries on the floor? They didn't. They didn't charge a core charge because a core was brought in. Further, they don't consider if I brought an old core when I purchased the battery 5 years ago! Of course I wouldn't be charged a core fee then if so! I needed a new battery and was there. Feeling held hostage, and having waited and spent enough time on a battery purchase, I purchased the new one and left.

-Anyone know if the purpose of the core charge rebate is negated by exercising a warranty request?
-And if I didn't pay a core charge on the previous Kirkland battery, they must charge me one now, despite if I brought the old one in at the time of purchase on a new battery?

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mgraves
Pollock Pines, US
Dec 01, 2010 5:23 am EST

9. How Does Tax Apply to Core
Charges for Vehicle Repair Parts?
Putting the “parts” together in figuring out taxes
can be just as challenging as putting the parts together
on a vehicle. The parts must fit right to get
the right results.
For example, a common problem area is how to
apply tax when there is a “core” charge.
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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taxed4govt
, US
Jun 02, 2010 12:47 pm EDT

I just went to Costco to find out why we were charged core tax and the entire core plus tax not returned core; after an hour talking to the manager I was given a paper that was from the State Board of Equalization to Costco requiring them to tax the core and not return it to the consumer. How did this tax get passed? Who gave them permission to do this and where does this money go to? A raise for a fat a#@#! Same with the CRV if you calculate it, it actually is more than the tax - not taxed on bottle water think again! You are right it might be small change but we bought 6 batteries therefore $4.73 was more noticeable. It may be lunch for someone but if this happens every day it adds up- all the hidden taxes that we get charged with could add up to a car payment when it goes unnoticed. Time for the common folk to wake up and have these government people take a paycut instead of raises when they are sitting fat and doing less work

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DANNY GADDIS
Adelanto, US
May 24, 2010 7:53 pm EDT

THE COSTCO IN VICTORVILLE CA GAVE ME A PRINTOUT THAT CLAIMS ITS THE STATE OF CALIFORNIA THAT REFUSES TO RETURN THE TAX ON THE CORE.