California – Assessment Imposed on Purchasers of Lumber Products or Engineered Wood Products

SALT Report 1713 – The California State Legislature passed a bill that will impose an assessment of 1% on purchases of lumber effective January 1, 2013. The assessment is in addition to any other California sales and use taxes imposed by lawn and will be levied on any person who purchases a lumber or engineered wood product for storage, use, or other consumption in California.

The terms of the bill provide that:

  • The assessment will be administered by the California State Board of Equalization
  • All retailers will be required to collect the assessment fees from the purchaser and remit the amounts collected to the BOE
  • The retailer is required to separately state the assessment and is prohibited from combining it with any other fee, charge, or amount paid by the purchaser
  • Any person who purchases a lumber or engineered wood product is liable for the assessment until it has been paid to the state.  However, payment to a retailer will relieve the person from further liability for the assessment
  • Assessments collected from a person that are not remitted to the BOE will be a debt owed to the state by the retailer
  • The lumber products assessment is due and payable to the BOE on a quarterly basis and must be filed electronically
  • Every person required to pay the lumber products assessment is required to register with the BOE, and
  • The BOE will provide an annual list of the specific lumber products and engineered wood products that will be subject to the assessment

For Further Information:

California State Legislation:  AB 1492