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Listed below are comments received from stakeholders relating to the
issue area of
recycling fee
. Comments are received through
stakeholder meetings and correspondence. Due to transcription and/or space
limitations, the following may be paraphrased from the original comment
received.
Sales Taxability of Covered Electronic Waste Recycling Fee:
Clarification
The
Board of
Equalization
Legal Office has updated its advice and determined
that the Covered Electronic Waste Recycling Fee is NOT subject to the
California Sales Tax. If the fee had been assessed against the
manufacturer, distributor, even the retailer, it would have been
included in the "total cost of the goods," and would have had to have
been included in "gross receipts" subject to sales tax. Because the fee
is assessed against the consumer, and "collected" by the retailer, it is
not part of the cost of the goods, NOT part of gross receipts and is NOT
subject to sales tax. Earlier advice to the contrary was based on an
erroneous assumption that the fee was part of the cost of the goods.
Please disregard previous advice on this subject and do NOT consider the
fee subject to sales tax. |
Comments/Questions (received as of March 17, 2004)
- What is the “first sale?” Definition. of consumer includes a business, when one of my manufacturers sells to a dealer, is that a first sale? We also have service providers and we need to consider this. Manufacturer and Internet sales--what is the procedure for remitting the fees?
- Will the fee be taxable? The items are taxable, are the fees? Significant implications to our stores--big scope of retailers. We need guidance on how and when to remit the fees--the closer you can get to BOE’s sales tax collection system, the better. Break down timeline into working groups--i.e., retailers working with the public. Focus the participants at future
workshops
- CIWMB has the authority to set actual recycling fee. The fee is not just for collection but also to operate a free/convenient system.
- Fee charged to manufacturers. This is charged to the consumer. Would the fee or reimbursement be adjusted based on
location?
- If manufacturers use and buy their own products, does the fee apply?
- What type of information, from a retail level, must be captured and reported with the fee payment to the Board?
- When will the (consumer fee) reporting forms be available?
- When will the first (fee) deposit be due after the July 1, 2004 implementation date?
- Is the e-waste fee subject to sales tax?
- Are there any in-store signage requirements or print ad requirements?
- Is the E-Waste Fee to be listed as a separate item on the sales receipt?
- Does the fee have to be itemized on the sales receipt given to customers?
- Does the electronic waste recycling fee have to be charged to the customer, or can the retailer absorb the fee? It may be less expensive to absorb and pay the fee rather than go through the more expensive reprogramming costs.
- Will organizations currently exempt from paying sales tax, such as
schools and churches, have to pay the fee?
- What level of specificity should manufacturers provide to retail partners on covered electronic devices? Is it sufficient to say "collect the fee on all computer monitors, both CRT and LCD" -- or should the letter specify model numbers? Are manufacturers required to send a similar letter each time a model of a covered electronic device changes slightly?
- The law doesn't specify any ongoing notification after this notice by April 1, 2004 -- does the manufacturer's notification responsibility to the retailer end after this task?
- Will the leasing industry be able to engage in discussions with BOE relating to collection of the fee on leases? As was noted at the workshop on Feb. 6, there are special issues on what constitutes "first sale" that the leasing industry needs to participate in resolving. Discussions with BOE leading to resolution of these issues needs to include industry representatives.
- Is refurbished equipment subject to fees and if it goes back on the market multiple times is it subject to multiple fee payments?
Every effort has been made to accurately reflect
stakeholder input. Please direct any corrections or additional comments in
alignment with guidance on the Stakeholder Input page.
Stakeholder Input Page |
SB 20 Home Page
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