Core charges

What is a core charge?

Persons who rebuild automotive parts such as water pumps, clutches, alternators, etc., make a "core" charge to the customer at the time a rebuilt part is sold. The core charge is a means used by the rebuilder to ensure a supply of rebuildable parts. This core charge generally follows the part through the distribution chain (rebuild, distributor, wholesaler, retailer) to the final sale to the consumer.

Is the core charge refunded?

The core charge will be refunded to the customer if the customer gives the seller a rebuildable part.

B&O tax due

The used part, which is returned to the seller and eventually to the rebuilder, is considered to be part of the consideration paid for the rebuilt part. The B&O tax is due on the full selling price, which includes the core charge.

Considered trade-in-reduced sales tax

The return of the used part is considered as a trade-in and a reduction of the value on which retail sales tax is due.


In the case of batteries, the law requires the seller to make a five dollar minimum core charge to encourage the recycling or remanufacturing of batteries.

Return of rebuildable parts by dealer to supplier

The return of rebuildable parts by the dealer to the supplier is not a taxable transaction.


Revised Code of Washington (RCW) 82.08.010
Revised Code of Washington (RCW) 82.08.036
Washington Administrative Code (WAC) 458-20-247
Washington Administrative Code (WAC) 458-20-250
Washington Administrative Code (WAC) 458-20-272