Wal-Mart Fails the Pesticide Tax

California has a lot of taxes. One of the taxes that most individuals are not aware of is the pesticide tax. As the DPR notes, “California assesses a fee on all pesticide sales, levied at the point of first sale into the state. A “mill” is equal to one-tenth of a cent. This “mill assessment” is 21 mills, or 2.1 cents per dollar of sales. Mill assessment revenues are placed in a special fund used to support the State’s pesticide regulatory program.” Of course, the retailers pass this tax on to consumers, but that’s another story for another day.

Wal-Mart used to be able to avoid this tax. California changed the law in 2005 so that “big box” retailers can’t avoid the tax by having corporate offices in another state. California requires all sellers of pesticides to pay the tax.

Wal-Mart’s bill? $1.2 million: $1.09 million from the mill tax, and $110,000 in interest and penalties (according to ISSA). Wal-Mart is pledging to work with the DPR, and given Wal-Mart’s push for positive public relations, I’m sure that will be the case.

Given California’s looming budget deficit, a million here and a million there can add up.

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