Tax Guide for Energy Resources (Electrical Energy) Surcharge
Getting Started

Application of Surcharge

The Electrical Energy Surcharge is a tax imposed on consumers, based on the quantity of kilowatt-hours consumed in California, for the consumption of electrical energy purchased from an electric utility.

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.

Registration

Online Registration – Register with us for an electrical energy surcharge account by selecting “Register for a New Business Activity.” Visit the Online Services webpage for a list of information you may need to complete your registration.

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.

Surcharge Rate

The California Energy Commission determines the surcharge rate at a public meeting each November to be effective January of the following calendar year (RTC 40016).

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

Return and Payment

The Electrical Energy Surcharge returns and payments are due quarterly on or before the last day of the month following each calendar quarter. For example, the First Quarter 2020 return was due April 30, 2020.

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:

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.

Penalty and Interest

The penalty for filing a late return and/or late fee payment is ten percent of the fee amount due for the period. Interest also applies to late fee payments.

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).

Updating Your Business Information with CDTFA

Update Business Information Online – Update your business information through our online services. Log in using your username and password and select the account for which you wish to update. Select the More link under the I Want To section. Then select the option you are requesting to update under Account Maintenance.

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

Record Retention

You should retain records for at least four years from the time the surcharge is due unless we authorize you in writing to destroy them sooner.

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