Lithium Extraction Excise Tax Guide

Helping businesses succeed is important to the California Department of Tax and Fee Administration (CDTFA). The taxes or fees paid to the state help fund state and local services and programs that are important to our communities.

This guide will help you better understand the Lithium Extraction Excise Tax and the obligations of lithium producers in California.

Lithium Extraction Excise Tax

The lithium extraction excise tax applies to producers per metric ton of lithium carbonate equivalent extracted in California. The tax rate is based on the cumulative total metric tons of lithium carbonate equivalent extracted by a producer from the date the first metric ton of lithium carbonate equivalent was extracted. There are three different tax rates per metric ton based on the cumulative total amount of lithium carbonate equivalent extracted. See the Tax Rates section on our Getting Started section for more detailed tax rate information.

How the Revenue is Used

The revenues from the lithium extraction excise tax, after state administrative costs, are distributed in two ways. A portion of the revenues are used for Salton Sea restoration projects and grants for community engagement or community-benefit projects at or around the Salton Sea. The remaining funds are disbursed to the counties impacted by lithium extraction activities.

For detailed revenue information, see Revenue and Taxation Code (R&TC) section 47100 and Fish and Game Code section 2951.

How to Use This Guide

The Getting Started section provides key resources related to registration, filing returns, making payments, account maintenance, and other important information.

The Resources section provides links to helpful information, including law and regulation information, publications, special notices, and access to assistance from our customer service representatives.

If You Need Help

For assistance with topics included in this guide or other related questions, please contact us by email or by calling our Customer Service Center at 1-800-400-7115 (CRS:711). Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays. Additional contact information and hours of operation are available on our How to Contact Us webpage.

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