Environmental Fee Return
General Information
The California Department of Tax and Fee Administration (CDTFA) administers the Environmental Fee imposed by section 25205.6 of the California Health and Safety Code (HSC).
The environmental fee is imposed on businesses/organizations, unless otherwise exempted (refer to Exemptions from Fee section below), in industry groups that use, generate, store, or conduct activities related to hazardous materials in California. Activities related to hazardous materials may include the use of products such as ink, plastics, paint, etc., which were manufactured using hazardous materials. The fee applies to corporations, general partnerships, limited partnerships, limited liability partnerships, limited liability companies, and sole proprietorships that have the qualified number of employees who are each employed more than 500 hours in California during the calendar year. The qualifying number of employees for the years prior to 2022 is 50 or more. Effective January 1, 2022, the qualifying number of employees is 100 or more. The fee increases based on the number of employees. (HSC section 25205.6)
Exemptions from the Fee
Businesses/organizations with less than the number of qualifying employees who have worked in California are not subject to the Hazardous Waste Environmental Fee; however, a return is still required to be filed (refer to Filing Requirements section below). For periods prior to 2022, the qualifying number of employees is 50 or more employees that have worked more than 500 hours during the calendar year. Starting January 1, 2022, the qualifying number of employees is 100 or more employees that have worked more than 500 hours during the period.
The following organizations are also exempt:
- Private households (Standard Industrial Classification (SIC) code major group 88).
- Nonprofit residential care facilities (SIC code 8361 and starting January 1, 2022, North American Industry Classification System (NAICS) codes 623220, 623312, and 623990).
- Nonprofit credit unions.
- Insurance companies that pay a tax on gross premiums in lieu of all other California taxes and licenses.
- Banks that pay a tax on net income in lieu of all other California taxes and licenses.
- U.S. Government agencies and instrumentalities.
Filing Requirements
Except for the above mentioned exempt organizations (refer to Exemptions from Fee section above), all qualifying organizations with 100 or more employees that were each employed for more than 500 hours in California must file a return and pay the fee. The fee is due even if activities ceased during the calendar year, as long as the organization employed at least 100 employees in California for more than 500 hours each.
The hazardous waste environmental fee return and payment are due annually on or before the last day of the second month following the end of the calendar year for which the fee is due. A return must be filed even if the organization has no fee liability for the reporting period. (Revenue and Taxation Code (R&TC) section 43152.9)
Penalty and Interest
The penalty for filing a late return and/or late payment is ten percent of the amount due for the period (R&TC section 43155). Interest also applies to late payments for each month or fraction of a month that the payment is late (R&TC section 43156).
Initial Question
Did your organization have employees in the State of California during the reporting period?
Note: “Organization” includes general partnerships, limited partnerships, limited liability partnerships, limited liability companies, sole proprietorships, and all corporate entity types.
If your organization had employees in the State of California during the reporting period, select Yes.
If you did not have employees in the State of California during the reporting period, select No.
Qualifying Employees
Qualifying Employees
To determine the amount of fee due, select a category based on the number of persons who were employed by the organization in California for more than 500 hours during the calendar year covered by the return.
Select the correct number of employee category from the dropdown. Click the dropdown menu (downward arrow) and select the appropriate employee category range. The system will automatically populate the fee amount due in the next field, based on the employee category selected.
Total amount due. The system will automatically calculate this field.