Tax Guide for Sellers of Prepaid Mobile Telephony Services (MTS) and Telecommunication Service Suppliers

We recognize understanding tax issues related to your business can be time-consuming and complicated. We want to help you get the information you need so that you can focus on starting and growing your business as a seller of prepaid Mobile Telephony Services (MTS) or as a telecommunication service supplier (service supplier).

This guide provides you with general information regarding the collection, reporting, and paying of the Emergency Telephone Users Surcharge, which includes the 911 surcharge and 988 surcharge. If you are a seller of prepaid MTS, this guide will also provide you with information about your additional requirement to collect local charges.

The collection requirements differ between sellers of prepaid MTS and service suppliers:

Sellers

If you are a seller of prepaid MTS, meaning you sell prepaid wireless services (prepaid MTS) to consumers in retail transactions, our section entitled Sellers will provide additional details about your collection requirements of the 911 and 988 surcharges and any local charges which you may also be required to collect.

Telecommunication Service Suppliers (Service Suppliers)

If you are a service supplier who is required to be registered with the California Public Utilities Commission, see Telecommunication Service Supplier for information about your collection requirements.

How the Revenue is Used

Revenues from the 911 and 988 surcharges are deposited into the State Emergency Telephone Number Account and the 988 State Suicide and Behavioral Health Crisis Services Fund, respectively, and used by the Office of Emergency Services. The funds collected support the costs of installing, administering, and supplying communication services for the 911 emergency communication system and the 988 Suicide and Crisis Lifeline.

How to Use this Guide

• See Sellers section for information and requirements for sellers of prepaid MTS, other than direct sellers.
• See Telecommunication Service Suppliers section for information and requirements for direct sellers.
• See 911 Surcharge, 988 Surcharge, and Local Charge Rates section for links to the current rates and other rate information.
• See Local Jurisdictions section for information about contracting with us.
• See Industry Topics section for information and examples on how to calculate the surcharges that may be relevant to you.
• See Resources section for links to additional information and references.

If You Need Help

If at any time you need assistance with topics included in this guide or with topics not included here, feel free to contact us by telephone or email. Contact information and hours of operation are available in Resources.

If you have suggestions for improving this guide, please contact us via email.