New CA Carpet Recycling Tax
Dec 10th 2019
It is always our goal to keep our clients well-informed. That’s why we want to explain some important industry news that will affect everyone who purchases carpet in California. We encourage you to take a few minutes to read and understand this email, as this change affects carpet for retail, tradeshow, event, commercial and any other use.
What’s Changing
California law AB 2398, the carpet stewardship law signed into effect in 2010 (and modified in 2017 by AB 1158) is intended to increase the diversion of carpet from landfills and the recycling of carpet in California.
The California Carpet Stewardship program is charged with meeting the requirements for carpet recycling set by AB 2398. It generates funding to meet the goals of AB 2398 through an assessment on carpet sold in California.
Effective January 1, 2019, all carpet sold in or shipped to California is required to be assessed at $0.35 per square yard at the point of sale. Please note that this tax is required by California law and all vendors and distributors will be charging it.
How the Funds Are Used
Currently, funds from this carpet assessment are used to:
- Support and incentivize the development and markets for products made from recycled carpet.
- Underwrite the collection and transport of carpet to and from drop-off sites.
- Inform and educate stakeholders about the importance, opportunities and challenges of keeping carpet out of landfills.
While carpet recycling is limited at this time, there are hopes this program will create new developments that will expand carpet recycling.
How This Will Appear on Your Invoices
As the California Carpet Stewardship program affects all industries that use carpet, you will start seeing this tax on all estimates, invoices and orders for carpet sold in or shipped to California.
On Brumark invoices, this will be clearly marked as a separate line item labeled “California Carpet Stewardship Assessment.”
What to Do If You Have Questions
It is important to understand this law and how it affects you. If you have any questions, please do not hesitate to contact your Client Experience Manager. We are here to help.
You also can learn more about the California Carpet Stewardship Program at the CalRecycle website.