Energy Resources (Electrical Energy) Surcharge Guide

Every electric utility in California making energy sales to consumers must collect and remit to the state the amount of surcharge applicable to its consumers. Every person who consumes electrical energy in California that is purchased from an electric utility is liable for the surcharge.

Who is required to Register?

You are required to register if you are:

• An electric utility, electrical service provider, or electrical corporation that sells electrical energy to California consumers; or

• A California consumer who purchases electrical energy from a utility, which is not subject to the Electrical Energy Surcharge (such as an out-of-state utility or the Bureau of Reclamation), or from a utility which has not collected and paid the surcharge to the CDTFA.

Visit our Tax Rates – Special Taxes and Fees page to view current and historical electrical energy surcharge rates.

File a Return Online – File your return through our online services homepage. Log in using your username and password and select the account for which you want to file a return. Select the More link under the I Want To section. Then select the File a Return link and follow the prompts.

Note: If you do not have a username and password, select the Sign Up Now link under the Create a Username heading from the online services homepage.

Additional Return Filing Options – You may also file your return by mail using the return form listed below:

• CDTFA-501-EU, Electrical Energy Surcharge Return
• CDTFA-501-EC, Consumer’s Electrical Energy Surcharge Return

Visit our Tutorials page for how to file your Electrical Energy Surcharge returns through our online services.

Returns must be received or postmarked by the due date to be considered timely, even if no amount is owed. If the due date falls on a Saturday, Sunday, or state holiday, returns and payments postmarked or received by the next business day will be considered timely.

Payments

Make a Payment – Make payments through our online services homepage. Log in using your username and password and select the account for which you wish to make a payment. Select the More link under the I Want To section. Then select the Make a Payment link and follow the prompts.

Additional Payment Options – Visit our website for additional convenient payment methods.

Electronic Funds Transfer (EFT) – Taxpayers with an estimated average monthly surcharge liability of $20,000 or more are required to pay amounts due by electronic funds transfer (EFT). We will notify you in writing if you are required to pay your surcharge electronically. Please visit our Electronic Funds Transfer (EFT) – Frequently Asked Questions (FAQ's) for payment methods and payment deadline information.

Payments must be received or postmarked by the due date to be considered timely. If the due date falls on a Saturday, Sunday or state holiday, payments postmarked or received by the next business day will be considered timely.

You may log into your account to submit an online request for an extension to file a return or relief from penalty (including interest due to a disaster).

Additional Business Update Options – You may also notify us of any changes by:

• Using form CDTFA-345-SP, Notice of Business Change, Special Taxes and Fees Account, or
• Contacting our Customer Service Center at 1-800-400-7115 (CSR: 711) selecting the option for “Special Taxes and Fees,” or
• Sending a message through our website at Email Your Tax Questions.

For more information about record retention, please view Regulation 2343 and Regulation 4901.

• The consumption of electrical energy which this state is prohibited from taxing under the United States Constitution or under the California Constitution. (RTC 40041.)
• The consumption by an electric utility of purchased electrical energy that is used directly, lost by dissipation, or unaccounted for in accordance with generally accepted accounting principles by the electric utility in the process of generation, transmission, and distribution of electrical energy. (RTC40043.)
• The consumption of electrical energy by foreign governments or by any state of the United States other than the State of California. (Regulation 2315.)
• The consumption of electrical energy by the following persons (Regulation 2316):
  • The United States, its unincorporated agencies, and instrumentalities;
  • Any incorporated agency or instrumentality of the United States wholly owned by either the United States or by a corporation wholly owned by the United States;
  • The American National Red Cross and its chapters and branches;
  • Insurance companies, including title insurance companies, subject to taxation under California Constitution, Article XIII, 28;
  • Banks located within the limits of this state (excludes state banks and national banking associations);
  • Enrolled Indians purchasing and consuming electrical energy on Indian reservations;
  • Career consular officers and employees of certain foreign governments who are exempt from tax by treaties and other diplomatic agreements with the United States;
  • Federal credit unions organized in accordance with the provisions of the Federal Credit Union Act.
• The consumption by an electric utility of self-generated electrical energy. (Regulation 2317)
• The consumption by an electric utility for purposes other than directly in the process of generation, transmission, and/or distribution of electrical energy that was used from a pool of self-generated and purchased electricity. Examples include electrical energy used in street lighting or for office/warehouse, outdoor advertising, off-street parking facilities, and other similar purposes. (Regulation 2317)

Delivery charges are not subject to the surcharge.

Visit the sites below for more information about other state, federal, and local taxing and licensing information:

• The Governor's Office of Business and Economic Development (GO-Biz) offers extensive information on state, local, and federal permit requirements. For a listing of their assistance centers, visit GO-Biz.
• CalGold for information regarding permit and licensing requirements for other state, federal, and local authorities (for example, you may need to be registered with the Franchise Tax Board or the Employment Development Department).
• California Tax Service Center for additional tax information.

You may also want to consult with a tax professional for assistance on other agency requirements.

Additional Refund Filing Options – You may also file a claim for refund by filing either:

• A form CDTFA-101, Claim for Refund or Credit, or
• An amended return(s) stating the specific reason(s) for the overpayment.

Claims for refund must be in writing, state the reason for overpayment, specify the period for which you made the overpayment, and the amount of the refund requested. Additional refund details can be found on our Filing Claims for Refund – Special Taxes and Fees webpage.

You may email the claim form to the Refund Team or mail it to:

California Department of Tax and Fee Administration
Appeals and Data Analysis Branch (MIC 33)
P.O. Box 942879
Sacramento, CA 94279-0033

Deadline to File a Claim for Refund

Be sure to file your claim for refund by the applicable deadline. If you do not file on time, we cannot consider your claim, even if you overpaid the surcharge. You must file a claim for refund by whichever of the following dates that occurs last:

• Three years from the due date of the return on which you overpaid the surcharge.
• Six months from the date you overpaid the surcharge.
• Six months from the date a determination (billing) became final.
• Three years from the date we collected an involuntary payment, such as a levy or lien.

If you have questions about your deadline to file a refund claim, contact our Customer Service Center at 1-800-400-7115 (CRS: 711) weekdays between 7:30 a.m. and 5:00 p.m., Pacific Time (except state holidays).