Purchased the top of the line product in California from Costco and I remember reading that the state return was included but I am being asked to pay?

The software included the program to prepare your state return, but e-filing the state return is an extra fee.  It does say that on the packaging--although it is in kind of small print.  It also tells you that the fee for e-filing the state is subject o change.  You can avoid the state e-filing fee by printing the state and mailing it.