California – Emergency Regulation Regarding Lumber Products Assessment Adopted

SALT Report 1908 – On October 23, 2012, the California State Board of Equalization adopted on an emergency basis Regulation 2000 as required by Assembly Bill 1492.  AB 1492 implements the 1% assessment on purchases of lumber products and engineered wood products to be collected by retailers at the time of sale. Further, the bill required the BOE to adopt a regulation that would determine the amount of reimbursement a retailer may keep to offset the costs associated with the collection of the assessment.

Regulation 2000 provides that a retailer, who collects the lumber products assessment on behalf of the BOE, may keep up to $250 per location as reimbursement for the costs associated with the collection of the assessment.

The reimbursement should be deducted on the retailer’s first return in which the assessment is reported. If the amount of the collected assessment is less than the maximum allowed reimbursement, the retailer may deduct the collected amount on subsequent returns until the maximum reimbursement amount is met.

A location is limited to a business that is registered under the retailer’s seller’s permit as of January 1, 2013.

For Further Information:

California State Board of Equalization – Emergency Special Tax Regulation 2000

Notice of Emergency Action

SALT Report 1713 – California Imposes Assessment on Purchasers of Lumber Products or Engineered Wood Products