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Business Taxes Law Guide—Revision 2024
Hazardous Waste Fee
Health and Safety Code
Division 20. Miscellaneous Health and Safety Provisions
Chapter 6.5. Hazardous Waste Control
Article 9.1. Facilities and Generator Fees*
Section 25205.6
Text of Section Operative January 1, 2007 Through July 11, 2021
25205.6. Environmental fees; categories; rates. (a) For purposes of this section, "organization" means a corporation, limited liability company, limited partnership, limited liability partnership, general partnership, and sole proprietorship.
(b) On or before November 1 of each year, the department shall provide the board with a schedule of codes, that consists of the types of organizations that use, generate, store, or conduct activities in this state related to hazardous materials, as defined in Section 25501, including, but not limited to, hazardous waste. The schedule shall consist of identification codes from one of the following classification systems, as deemed suitable by the department:
(1) The Standard Industrial Classification (SIC) system established by the United States Department of Commerce.
(2) The North American Industry Classification System (NAICS) adopted by the United States Census Bureau.
(c) Each organization of a type identified in the schedule adopted pursuant to subdivision (a) shall pay an annual fee, which shall be set in the following amounts:
(1) Two hundred dollars ($200) for those organizations with 50 or more employees, but fewer than 75 employees.
(2) Three hundred fifty dollars ($350) for those organizations with 75 or more employees, but fewer than 100 employees.
(3) Seven hundred dollars ($700) for those organizations with 100 or more employees, but fewer than 250 employees.
(4) One thousand five hundred dollars ($1,500) for those organizations with 250 or more employees, but fewer than 500 employees.
(5) Two thousand eight hundred dollars ($2,800) for those organizations with 500 or more employees, but fewer than 1,000 employees.
(6) Nine thousand five hundred dollars ($9,500) for those organizations with 1,000 or more employees.
(d) The fee imposed pursuant to this section shall be paid by each organization that is identified in the schedule adopted pursuant to subdivision (a) in accordance with Part 22 (commencing with Section 43001) of Division 2 of the Revenue and Taxation Code and shall be deposited in the Toxic Substances Control Account. The revenues shall be available, upon appropriation by the Legislature, for the purposes specified in subdivision (b) of Section 25173.6.
(e) For purposes of this section, the number of employees employed by an organization is the number of persons employed in this state for more than 500 hours during the calendar year preceding the calendar year in which the fee is due.
(f) The fee rates specified in subdivision (c) are the rates for the 1998 calendar year. Beginning with the 1999 calendar year, and for each calendar year thereafter, the State Board of Equalization shall adjust the rates annually to reflect increases or decreases in the cost of living during the prior fiscal year, as measured by the Consumer Price Index issued by the Department of Industrial Relations or by a successor agency.
(g) (1) Pursuant to paragraph (3) of subsection (c) of Section 104 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)), the state is obligated to pay specified costs of removal and remedial actions carried out pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9601 et seq.).
(2) The fee rates specified in subdivision (c) are intended to provide sufficient revenues to fund the purposes of subdivision (b) of Section 25173.6, including appropriations in any given fiscal year to fund the state's obligation pursuant to paragraph (3) of subsection (c) of Section 104 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)).
(h) This section does not apply to a nonprofit corporation primarily engaged in the provision of residential social and personal care for children, the aged, and special categories of persons with some limits on their ability for self-care, as described in SIC Code 8361 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition.
(i) The changes made to this section by the act of the 2005–06 Regular Session of the Legislature amending this section shall not increase fee revenues in the 2006–07 fiscal year.
Text of Section Operative July 12, 2021 Through December 31, 2021
25205.6. Environmental fees; categories; rates. (a) For purposes of this section, "organization" means a corporation, limited liability company, limited partnership, limited liability partnership, general partnership, and sole proprietorship.
(b) On or before November 1 of each year, the department shall provide the California Department of Tax and Fee Administration with a schedule of codes that consists of the types of organizations that use, generate, store, or conduct activities in this state related to hazardous materials, as defined in Section 25501, including, but not limited to, hazardous waste. The schedule shall consist of identification codes from one of the following classification systems, as deemed suitable by the department:
(1) The Standard Industrial Classification (SIC) system established by the United States Department of Commerce.
(2) The North American Industry Classification System (NAICS) adopted by the United States Census Bureau.
(c) Each organization of a type identified in the schedule adopted pursuant to subdivision (a) shall pay an annual fee, which shall be set in the following amounts:
(1) Three hundred fifty-seven dollars ($357) for those organizations with 50 or more employees, but fewer than 75 employees.
(2) Six hundred twenty-seven dollars ($627) for those organizations with 75 or more employees, but fewer than 100 employees.
(3) One thousand two hundred forty-four dollars ($1,244) for those organizations with 100 or more employees, but fewer than 250 employees.
(4) Two thousand six hundred sixty-nine dollars ($2,669) for those organizations with 250 or more employees, but fewer than 500 employees.
(5) Four thousand nine hundred eighty-five dollars ($4,985) for those organizations with 500 or more employees, but fewer than 1,000 employees.
(6) Sixteen thousand nine hundred eleven dollars ($16,911) for those organizations with 1,000 or more employees.
(d) The fee imposed pursuant to this section shall be paid by each organization that is identified in the schedule adopted pursuant to subdivision (a) in accordance with Part 22 (commencing with Section 43001) of Division 2 of the Revenue and Taxation Code and shall be deposited in the Toxic Substances Control Account. The revenues shall be available, upon appropriation by the Legislature, for the purposes specified in subdivision (b) of Section 25173.6.
(e) For purposes of this section, the number of employees employed by an organization is the number of persons employed in this state for more than 500 hours during the calendar year preceding the calendar year in which the fee is due.
(f) The fee rates specified in subdivision (c) are the rates for the 2021 calendar year.
(g) (1) Pursuant to paragraph (3) of subsection (c) of Section 104 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)), the state is obligated to pay specified costs of removal and remedial actions carried out pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9601 et seq.).
(2) The fee rates specified in subdivision (c) are intended to provide sufficient revenues to fund the purposes of subdivision (b) of Section 25173.6, including appropriations in any given fiscal year to fund the state’s obligation pursuant to paragraph (3) of subsection (c) of Section 104 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)).
(h) This section does not apply to a nonprofit corporation primarily engaged in the provision of residential social and personal care for children, the aged, and special categories of persons with some limits on their ability for self-care, as described in SIC Code 8361 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition.
(i) This section applies only to the fees due for the 2021 calendar year.
(j) This section shall remain in effect only until January 1, 2022, and as of that date is repealed.
Text of Section Operative January 1, 2022
25205.6. Environmental fees; categories; rates. (a) For purposes of this section, "organization" means a corporation, limited liability company, limited partnership, limited liability partnership, general partnership, and sole proprietorship.
(b) On or before October 1 of each year, the department shall provide the California Department of Tax and Fee Administration with a schedule of codes that consists of the types of organizations that use, generate, store, or conduct activities in this state related to hazardous materials, as defined in Section 25501, including, but not limited to, hazardous waste. The schedule shall consist of identification codes from one of the following classification systems, as deemed suitable by the department:
(1) The Standard Industrial Classification (SIC) system established by the United States Department of Commerce.
(2) The North American Industry Classification System (NAICS) adopted by the United States Census Bureau.
(c) (1) Each organization of a type identified in the schedule adopted pursuant to subdivision (a) shall pay an annual fee in accordance with Section 43152.9 of the Revenue and Taxation Code for the fiscal year in which it is assessed.
(2) The annual fee amounts for the 2022–23 fiscal year shall be set at the following amounts:
(A) One thousand two hundred sixty-one dollars ($1,261) for those organizations with 100 or more employees, but fewer than 250 employees.
(B) Two thousand seven hundred six dollars ($2,706) for those organizations with 250 or more employees, but fewer than 500 employees.
(C) Sixteen thousand dollars ($16,000) for those organizations with 500 or more employees, but fewer than 1,000 employees.
(D) Fifty-four thousand one hundred dollars ($54,100) for those organizations with 1,000 or more employees.
(3) Commencing July 1, 2023, the fee rates established pursuant to Section 25205.6.1 shall apply.
(d) The fee imposed pursuant to this section shall be paid by each organization that is identified in the schedule adopted pursuant to subdivision (b) in accordance with Part 22 (commencing with Section 43001) of Division 2 of the Revenue and Taxation Code and shall be deposited in the Toxic Substances Control Account. The revenues shall be available, upon appropriation by the Legislature, for the purposes specified in subdivision (b) of Section 25173.6.
(e) For purposes of this section, the number of employees employed by an organization is the number of persons employed in this state for more than 500 hours during the calendar year preceding the calendar year in which the fee is due.
(f) (1) Pursuant to paragraph (3) of subsection (c) of Section 104 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)), the state is obligated to pay specified costs of removal and remedial actions carried out pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9601 et seq.).
(2) The fee rates specified in subdivision (c) are intended to provide sufficient revenues to fund the purposes of subdivision (b) of Section 25173.6, including appropriations in any given fiscal year to fund the state’s obligation pursuant to paragraph (3) of subsection (c) of Section 104 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)).
(g) This section does not apply to a nonprofit corporation primarily engaged in the provision of residential social and personal care for children, the aged, and special categories of persons with some limits on their ability for self-care, as described in SIC Code 8361 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition or as described in Codes 623220, 623312, and 623990 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2017 edition.
(h) This section shall become operative on January 1, 2022.
Note.—Section 1 of Ch. 344 (AB 1813), of Stats. 2006, provides:
SECTION 1. The amendment of Section 25205.6 of the Health and Safety Code, enacted by Chapter 77 of the Statutes of 2006, which expanded the class of businesses subject to the fee imposed by that section, shall apply for the first time to the fee that is due for the 2007 calendar year. The fee for the 2007 calendar year is due no later than February 29, 2008.
Formal regulations that set criteria for hazardous waste fee are required.—The Department of Toxic Substance Control must formally adopt regulations that identify criteria that subject a corporation to the annual hazardous waste fee. The Department's view that all California corporations use, generate, store, or conduct activities in this state related to hazardous materials constituted an underground regulation. The superior court proceedings, including Morningstar's constitutional claims, are stayed pending formal adoption of rules. Morning Star Company v. State Board of Equalization and Department of Toxic Substances Control (2006) 38 Cal.4th 324.
Regulations adopted by Department of Toxic Substances Control were consistent with statutory definitions in the Health and Safety Code.—The Court of Appeal upheld the validity of DTSC regulations 66269.1, which implemented the statutory scheme in the Health and Safety Code, for imposition of a fee related to hazardous materials in the workplace, finding that the regulation was consistent with the intent of the Legislature to apply the fee to all businesses with 50 or more employees. The Morning Star Company v. Board of Equalization (2011) 201 Cal.App.4th 737.
* SEC. 29. It is the intent of the Legislature that any provision of Section 25205.2, 25205.17, 25205.21, or 25205.22 of the Health and Safety Code, as amended or added at the 1993 session of the 1993–94 Regular Session of the Legislature, that reduces or eliminates hazardous waste facility fees required to be paid under existing law, shall provide amnesty from those fees not yet paid for all persons who failed to pay the required fee under that law. It is the further intent of the Legislature that, except as otherwise provided in subdivision (f) of Section 25205.2 of the Health and Safety Code, those persons who paid the then applicable fees are not entitled to any refund of the fees paid.