California 2013: New Taxes on Lumber and Wood Products
- Jan 7, 2013 | Gail Cole
California is levying a new 1% sales tax on certain lumber and wood products. In Publication 256, the CA State Board of Equalization (BOE) explains how the 1% tax should be applied, charged to customers, remitted, and reported.
As of January 1, 2013, retailers of lumber and wood products are required to:
- "Collect the 1% assessment on sales of lumber products and engineered wood products to California consumers."
- "State the amount of the 1% assessment as a separate item on ... sales receipts. The separately stated amount is not subject to sales or use tax. The assessment may be designated on the sales receipt as 'lumber products assessment,' 'LPA,' 'lumber fee,' or 'lumber.'"
- "File electronically and pay the assessment to the BOE on ... sales and use tax return[s]."
Electronic reporting and payment is required by law. Any retailers of lumber products or engineered wood products whose BOE accounts have not been updated to include the assessment are asked to call the BOE Taxpayer Information Section at 1-800-400-7115. Additional information about electronic filing is available at the California State Board of Equalization.
The publication reminds that the 1% assessment is, "in general," not due on the following sales:
- "Sales for resale;"
- "Sales in interstate commerce. Sales made by a retailer in California but shipped directly to customers outside of California;"
- "Sales to the U.S. government;" and
- "Sales involving Native American Indians… ." These sales mirror the rules for sales and use tax laws. See Regulation 1616 and Publication 146.
A complete assessment table, which lists products subject to assessment and not subject to assessment, is available at Publication 256.
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