Tax Guide for Energy Resources (Electrical Energy) Surcharge
Industry Topics

Exemptions

The electrical energy surcharge does not apply to:

  • 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. (RTC 40043.)
  • 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)

Sales of Electrical Energy Delivered by another Utility

If your business sells electrical energy to consumers, your business is required to collect the surcharge regardless of who delivers the electrical energy to your customers.

Delivery charges are not subject to the surcharge.

Registration with Other Agencies

If you are an electrical energy provider, please contact the California Public Utilities Commission (CPUC) as you may be required to register with them.

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.

Refunds

Submit a Claim for Refund – File your claim for refund through our online services homepage. Log in using your username and password and select the account for which you want to claim a refund. Select the More link under the I Want To section. Then select the Submit a Claim for Refund link and follow the prompts.

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

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).