MEDIA RESOURCE: Lumber Products Assessment

California Lumber Products Assessment

Beginning January 1, 2013, consumers will see 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.

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 will be affected?

Those numbers are not yet known, but the BOE is contacting about 200,000 licensed contractors and retailers who may be affected by this new assessment imposed upon purchasers of lumber products.

What is the estimated revenue generated by the Lumber Products Assessment?

The Lumber Products Assessment is estimated to generate $35 million in revenue annually for the Timber Regulation and Forest Restoration Fund.

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.
  • The Lumber Products Assessment will be filed electronically (eFile) 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 eReg.

Where can I find more information?