California – BOE Reminds Taxpayers of Lumber Products Assessment

SALT Report 1951 – The California State Board of Equalization issued a reminder for  taxpayers that beginning January 1, 2013, a 1% assessment will be imposed on the purchase of lumber products and engineered wood products for use in California.  Retailers and construction contractors who sell these products will be required to collect the assessment on their sales to consumers and pay the amounts collected to the BOE.

To avoid confusion, the BOE is sending out more than 200,000 letters to retailers and construction contractors informing them that they may be affected by the 1% lumber products assessment. The letters provides the following collection and compliance requirements:

  • Receipts given to customers must clearly state the 1% lumber products assessment,
  • The 1% lumber products assessment is not subject to sales or use tax,
  • Retailers will be required to electronically file the lumber products assessment with the BOE,
  • Retailers can file and pay their sales and use tax returns using eFile, and
  • Retailers are entitled to $250 in reimbursements to offset any start-up costs associated with the collection requirements

All money collected from the assessment will be used to fund various state programs such as the Department of Forestry and Fire Protection (CAL FIRE) and the Timber Regulation and Forest Restoration Fund.

For Further Information:

California State Board of Equalization – News Release 117-12-H

Lumber Products Assessment – Frequently Asked Questions

SALT Report 1908 – California Emergency Regulation Regarding Lumber Products Assessment Adopted