MEDIA RESOURCE: Lumber Products Assessment
Beginning January 1, 2013, consumers saw a one-percent (1%) Lumber Products Assessment on purchases of lumber products and engineered wood products made at California retailers. The assessment will be collected by retailers. Starting January 1, 2015, retailers who sell $25,000 or less annually in lumber products will be exempt from collecting the assessment, due to Assembly Bill 2031.
Consumers, including construction contractors, who purchase a lumber product or an engineered wood product outside of California for use in California are required to report and pay the assessment to the BOE.
The California State Board of Equalization (BOE) is required by law (Assembly Bill 1492, Ch. 289, Stat. 2012) to collect the Lumber Products Assessment on behalf of the California Board of Forestry and Fire Protection within the Department of Forestry and Fire Protection (CAL FIRE).
How many taxpayers are affected?
There are approximately 5,000 licensed contractors and retailers who may be affected by this assessment imposed upon purchasers of lumber products.
How is the fee collected?
- The retailer will collect the one-percent Lumber Products Assessment from the purchaser at the point of sale.
- Retailers must separately list the lumber products assessment amount on the sales receipt given to customers.
- Retailers may retain a one-time amount of $250 per retail location as reimbursement of their costs to set up collection systems prior to January 1, 2013.
- Beginning January 1, 2014, lumber retailers that were in the business selling lumber products or engineered wood products before January 1, 2013 may retain an additional $485 per business location as reimbursement for their start-up costs.
- The Lumber Products Assessment will be filed online on a quarterly basis, with the retailer's sales and use tax return.
What is BOE's role?
The BOE will administer the Lumber Products Assessment by:
- Identifying and collecting revenue from retailers required to collect and remit sales and use tax on lumber products.
- Provide the lumber products assessment tax forms to retailers already registered with the BOE.
- Assist purchasers from out-of-state sellers to pay the lumber assessment.
- Providing a certificate of registration for use tax remission to out-of-state retailers engaged in lumber sales in this state,
- Providing seller's permits to retailers engaged in lumber and lumber product sales in California via online registration.
Where can I find more information?
- California Lumber Products Assessment
- Lumber Products Assessment – Frequently Asked Questions (FAQ's)
- BOE Emergency Special Tax Regulation 2000 – Retailer Reimbursement Retention
- Regulation 2001, Additional Allowed Retailer Reimbursement Retention
- BOE Legislative Enrolled Bill Analysis AB 1492
- Board of Forestry Emergency Regulation to Implement “Lumber Products Assessment”
- California Department of Forestry and Fire Protection (CAL FIRE)