Lithium Extraction Excise Tax Guide
Industry Topics
Definitions
- Extraction
- Extraction is the process of removing lithium from geothermal fluid, spodumene ore, rock, minerals, clay, or any other naturally occurring substance by a physical or chemical process.
- Producer
- A producer is any person who extracts lithium from geothermal fluid, spodumene ore, rock, minerals, clay or any other naturally occurring substance in California.
- Minerals
- Minerals has the same meaning as defined in section 2005 of the Public Resources Code. Minerals means any naturally occurring chemical element or compound, or groups of elements and compounds, formed from inorganic processes and organic substances, including, but not limited to, coal, peat, and bituminous rock, but excluding geothermal resources, natural gas, and petroleum.
- Metric Ton
- A metric ton is a unit of mass equal to 1,000 kilograms.
- Geothermal Fluid
- Geothermal fluid means naturally occurring groundwater, brines, vapor, and steam associated with, or derived from, a geothermal resource.
- Geothermal Resource
- Geothermal resource has the same meaning as defined in section 6903 of the Public Resources Code. Geothermal resources mean the natural heat of the earth, the energy, in whatever form, below the surface of the earth present in, resulting from, or created by, or which may be extracted from, such natural heat, and all minerals in solution or other products obtained from naturally heated fluids, brines, associated gases, and steam, in whatever form, found below the surface of the earth, but excluding oil, hydrocarbon gas or other hydrocarbon substances.
Required Registration with Other Agencies
Visit the sites below for more information about other state, federal, and local taxing and licensing information:
- California Department of Conservation—The California State Mining and Geology Board (SMGB) serves as a regulatory, policy, and appeals body representing California's interests in the reclamation of mined lands, geology, geologic and seismologic hazards, and the conservation of mineral resources.
- GO-Biz—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 the GO-Biz website.
- CalGold—This website provides help with permit and licensing requirements on other state, federal, and local authorities.
Refunds
If you believe you have paid more lithium extraction excise tax than you owe, you may file a claim for refund using our online services.
To submit a claim for refund, log in using your username and password, and click on the account for which you want to request a refund. The claim for refund is located under the I Want To section, More subsection. Select the Submit a Claim for Refund link and follow the prompts.
Claims for refund must state the specific reasons for the overpayment, the specific period for which you are making the claim, and the amount of the overpayment. We may request documentation to support your claim.
Be sure to file your claim for refund by the applicable deadline. If you don't file on time, we cannot consider your claim. Whichever of the following dates occurs last is your deadline to file a timely claim for refund:
- Three years after the due date of the return on the period for which you overpaid the tax.
- Six months from the date you overpaid the tax.
- Six months from the date a determination (billing) became final.
- Three years after we collected an involuntary payment, such as from a levy or lien.
For more information, see publication 117, Filing a Claim for Refund