SALT Report 2933 – The California State Board of Equalization announced that they have voted to readopt Regulation 2000, Retailer Reimbursement Retention, as an emergency regulation, for the second time. This will allow the Board to consider the adoption of a permanent regulation that will specify the amount of reimbursement a retailer may retain pursuant to Public Resources Code section 4629.5, subdivision (a)(3).
At issue, is the one-time $250 reimbursement that a retailer, who is required to collect the 1% lumber products and engineered wood assessment, may take on their tax returns pursuant to AB 1492. The California Retailers’ Association and the West Coast Lumber & Building Material Association argue that retailers should receive a higher rate of reimbursement and on a continual basis.
As a result, the Board is considering the adoption of new regulations that would allow “a retailer who is required to collect the Lumber Products Assessment to retain $485 per location, in addition to the $250 allowed by Regulation 2000, as reimbursement for start-up costs associated with the collection of the assessment.” The Board is also considering a regulation that would allow retailers to retain $5,500 per lumber location, and an additional $1,500 on an annual basis.
If you have any questions regarding the new emergency regulation you can send them to Lynn Whitaker at Lynn.Whitaker@boe.ca.gov, or you can call (916) 324-8483.
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