Laws, Regulations and Annotations
Search
Business Taxes Law Guide—Revision 2024
Local Prepaid Mobile Telephony Services Collection Act
Revenue and Taxation Code
Division 2. Other Taxes
Part 21.1. Local Prepaid Mobile Telephony Services Collection Act
Section 42101.7
42101.7. Exemption from collection of surcharge for sellers with de minimis sales. (a) Commencing January 1, 2017, a seller, other than a direct seller, with de minimis sales of prepaid mobile telephony services of less than fifteen thousand dollars ($15,000) during the previous calendar year is not required to collect local charges pursuant to Section 42101.5. The Department of Finance shall annually review and adjust that de minimis sales threshold as necessary to minimize program administration costs and maintain revenues to support program administration and enforcement activities. Any adjustment of the de minimis sales threshold shall become operative on January 1 of the following calendar year. Nothing in this section prevents a seller from collecting and remitting the surcharge on a voluntary basis even if the seller meets the de minimis sales threshold.
(b) For purposes of this section, the de minimis sales threshold shall be based on the aggregate of all sales of prepaid mobile telephone services subject to the local charges at all retail locations operated by the seller and not the individual sales at each retail location operated by the seller.
History—Added by Stats. 2015, Ch. 25 (SB 84), in effect June 24, 2015. Stats. 2020, Ch. 179 (SB 1441), in effect January 1, 2021, deleted "administration, enforcement, and Public Utilities Commission public purpose programs and rulemaking" and added "administration and enforcement" after support program in second sentence of subdivision (a).