Purchasers and California Lumber Products Assessment

Purchasers May Have to Pay the Lumber Products Assessment Directly to CDTFA

The 1% lumber products assessment is imposed on you, as the purchaser of qualified lumber products and engineered wood products for use in this state (Public Resources Code § 4629.5).

You generally pay the 1% lumber products assessment on your purchases of lumber products and engineered wood products to the retailer. However, effective January 1, 2015, low-volume retailers (sell less than $25,000 of lumber products or engineered wood products in the prior calendar year) are not required to collect the 1% lumber products assessment from their customers.

If the retailer did not collect the 1% lumber products assessment from you on your purchase of lumber products or engineered wood products that you will use in this state, then you must directly report and pay the lumber products assessment to the CDTFA.

How to Report and Pay the Lumber Products Assessment Due on Your Purchase

If you have a seller's permit or use tax account, you can file and pay the lumber products assessment along with your sales and use tax return online as long as your account has been updated to include the lumber schedule (see Updating Your Account below).

If you do not have a seller's permit or use tax account, you can file and pay the lumber products assessment online by following the instructions below:

  1. Access our Online Services page, Registration tab.
  2. Select the “Get Started” button.
  3. Scroll down and find the “File a Return” hyperlink under the “Limited Access Functions” column.
  4. Select the “One-Time Use Tax and/or Lumber Return” hyperlink.
  5. Follow the prompts to file and pay the lumber assessment.

On your small lumber purchase receipts, you can wait until net combined lumber purchases are $50 or more, before reporting and paying the assessment to the CDTFA.

Remember, a California retailer who does not collect the 1% lumber products assessment will still charge and collect the sales tax from you on your retail purchase of lumber products (The lumber products assessment amount is not subject to sales or use tax). Therefore, you are only responsible for paying the 1% lumber products assessment directly to the CDTFA, not the sales tax.

Updating Your Account

If you need to add the lumber schedule to your electronic sales and use tax return, please call our Customer Service Center at 1-800-400-7115 or your local CDTFA office to update your account to include the lumber schedule.