Getting Started with Lithium Extraction Excise Tax

Registration

If you are currently extracting lithium in this state or plan to begin lithium extraction in 2023, contact us by calling our Customer Service Center at 1-800-400-7115 (CRS:711) for registration assistance. Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays.

Who is Required to Register?

You must register with us for a Lithium Excise Tax Permit, file tax returns, and pay the applicable tax to us if you are a person (producer) extracting lithium from:

• Geothermal fluid,
• Spodumene ore,
• Rock,
• Minerals,
• Clay, or
• Any other naturally occurring substance.

Tax Rates

For 2023 and 2024, the lithium extraction tax rates are as follows:

1. If ownership of an existing site changes, the cumulative amount of lithium carbonate equivalent extracted previously reported for that site is assumed to be 30,000 metric tons. The tax rate applied to the new ownership account is $800 per metric ton.
2. The lithium extraction excise tax rate is set by statute (R&TC section 47010(a)). Beginning January 1, 2025, and every January thereafter, we will adjust the lithium extraction excise tax rate based on changes in the California Consumer Price Index.

Lithium Conversion Equivalents

Lithium and lithium compounds extracted must be converted to the lithium carbonate equivalent by multiplying the tonnage of lithium and lithium compounds by the appropriate conversion factor as listed below:

Filing Returns

Your Lithium Excise Tax Return and payment are due on or before the last day of the month following each reporting period. You are required to electronically file a return even if you do not have any reportable activity during the reporting period. Returns must be electronically filed and received 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 received by the next business day will be considered timely.

Filing a late return and/or late payment may result in a late penalty and/or interest assessment. See Penalty and Interest topic in this section.

File a Return Online — File your return and pay your taxes through our online services. Log in using your username and password and select the account for which you wish to file a return. Then select the File a Return link for the filing period you wish to file and follow the prompts.

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.

Visit our Tutorials page for instructions on how to file your Lithium Excise Tax returns through our online services.

Payments

Payments must be submitted by the due date to be considered timely.

Make a Payment — Payments may be submitted through our online services. 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.

If your average monthly tax payment is $20,000 or more, you are required to pay by Electronic Funds Transfer (EFT). We will notify you in writing if you are required to pay your taxes by EFT.

For an EFT payment to be timely, it must be initiated on or before the filing due date and funds must settle into CDTFA's bank account on or before the banking day following the due date. Some EFT payments made on the return's due date may need to be initiated before 3:00 p.m. (Pacific time) to be received timely. For more information regarding EFT payments, please see our EFT FAQs.

Penalty and Interest

The penalty for filing a late return or making a late tax payment is ten percent of the tax amount due for the period. Interest also applies to late tax 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).

Recordkeeping

You must retain records for at least four years from the time the tax is due unless we give you written authorization to destroy them sooner. For additional information regarding record retention, please see Regulations 3501 and 4901.

Updating Your Business Information

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