MTC does not remit CDPR mill fees for FBM (CA pesticides). Mods lied! (sort of remitted for FBA only)

On March 31st, 2022 Amazon Seller News Updates on California Marketplace Tax Collection and Seller Central reporting

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Updates on California Marketplace Tax Collection and Seller Central reporting

Beginning April 15, 2022, Marketplace Tax Collection (MTC) rules will include regulatory fees subject to MTC (for example, the Electronic Waste Recycling fee) that are supported by our calculation system. The California Electronic Waste Recycling fee will be calculated, collected, and remitted by Amazon (as the marketplace facilitator) on third-party seller offers. Other fees will follow as those MTC rules are finalized and the fees are supported by our service.

You do not need to take any action in your seller account for supported regulatory fees to be collected from a customer. Amazon will determine if a supported regulatory fee applies to your product using relevant product information (for example, product type, screen size, and battery information) that you supplied when listing your product.

If a regulatory fee amount is collected from the buyer, that amount will be reflected as a “regulatory fee” line item on the order and transaction detail pages. Your payments and sales tax reporting will have new “regulatory fee” columns that will also reflect the total regulatory fee amount.

In addition, the sales tax report format will also be updated to provide better filtering by cascading the order information from the primary line to the secondary (jurisdiction) lines that were previously left blank, with the exception of any “total” amounts that will remain on the primary line.

Sellers who use an API to obtain their reports, make note of the column and header updates. See Payments Summary, Date Range, and Tax Document Library for more information.

You may consider working with your tax advisor or the taxing jurisdiction directly to determine if your business has any new or ongoing reporting obligations.

For additional information, see the US Marketplace Tax Collection FAQ and Marketplace Tax Collection for Canada FAQ.

Amazon Sellers were told that Amazon would remit all regulatory fees for California. On the ASF it was asked if this included California’s CDPR mill assessment fees for all pesticides sold to/in California. Mods there replied, Yes.

I have learned from CDPR that Amazon is only paying the mill assessment on FBA pesticides. If you are selling pesticides on Amazon and fulfilling the yourself, Amazon is NOT remitting the mill assessment fees. You must register with CDPR and report how much was sold to California and remit the mill fee. It seems that Amazon is reporting the sales by FBM Sellers but not remitting the fee. This means California knows if you aren’t reporting/paying (thanks Amazon) and will be coming after you. The fines are significantly greater than the actual fees.

Just a friendly warning for FBM Sellers of pesticides, to get right with California before you get a $10K fine.

So is this a temporary error, or were ASF mods wrong?

Thank you! @Tallytony @Sundance @ASV_Vites might all sell “pesticides” so tagging here. :flushed:

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As I understand it, the mods were correct if you sell Fulfilled by Amazon. But wrong if you are fulfilled by Merchant. I assume it is not a temporary situation.

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That’s admissible evidence right there

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Sure, about as good as if I got straight from