New Surcharge for Prepaid Wireless Cards/Service
AB 1717 was signed into law by Governor Jerry Brown. A prepaid mobile telephony services (MTS) surcharge is now imposed on purchasers (consumers) of prepaid MTS as a percentage of the sales price of each retail transaction involving prepaid wireless cards/service in the state. Sellers of prepaid MTS (or prepaid wireless services) are required to charge and collect the prepaid MTS surcharge from the purchaser at the time of the retail transaction.
Beginning April 1, 2016, all telephone communications service suppliers that provide prepaid MTS to users of such services in the City and County of San Francisco (the “City”) as direct sellers must collect and remit the City’s Telephone Users Tax and Access Line Tax on those services in addition to any Telephone Users Tax or Access Line Tax collected and remitted to the City with respect to the provision of other than prepaid MTS to users of those services in the City. The rates for prepaid MTS are as follows:
- Telephone Users Tax rate for prepaid MTS is 7.5% (0.075).
- The Access Line Tax rate for prepaid MTS is 6.5% (0.065).
Rates for other than prepaid MTS remain unchanged by AB1717.
For ALT and TUT forms and instructions, please go to: http://sftreasurer.org/business-form-central
Access Line Tax and Telephone Users Tax applies to all suppliers of telephone “access lines” in the City & County of San Francisco. Fees are collected from telephone (including cell phone) users by telephone providers and must be separately stated on bills.