Industry Topics for California Lumber Products Assessment

Delivery charges, handling charges and sales tax

In general, the sales price does not include separately stated delivery charges or sales tax. However, handling charges are considered part of the sales price and therefore subject to the lumber products assessment.

Please see publication 100, Shipping and Delivery Charges for additional information regarding transportation and delivery charges.

Acquiring Inventory

The lumber products assessment does not apply when you, the retailer, acquire the inventory for resale. The lumber products assessment applies when the product is sold at retail. It is imposed on the purchaser of lumber products or engineered wood products for the storage, use, or consumption in this state.

Merchandise exchanged for the same price

The lumber products assessment is based on one percent (1%) of the selling price of lumber products. There is no additional assessment on an even exchange of merchandise.

Merchandise returned for a refund

The lumber products assessment is refundable to the customer on merchandise that is returned.

If you collect an amount greater than the actual amount of lumber products assessment due, you must either return the excess amount to the customer or pay the excess amount to the CDTFA. You may not keep the excess amount of lumber products assessment you have collected.

Sale of packages or kits that contain lumber products

Packages and/or kits such as decking packages, picnic table kits, shed kits, and other similar packages or kits that contain products that include pre-cut, pre-drilled, or other items manufactured to some extent, and then disassembled for shipment are not subject to the lumber products assessment. The additional labor added to these items removes them from the category of products typically regarded as lumber products.

For more information about products subject to the lumber product assessment, visit Board of Forestry's website, and follow the link for Emergency Regulation to Implement Lumber Products Assessment.