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

General Surcharge Application

Telecommunication service suppliers (service suppliers) provide access lines to service users in California and are required to collect the Emergency Telephone Users Surcharge, which includes both the 911 surcharges and 988 surcharges.

As of January 1, 2023, Assembly Bill 988 (Stats. 2022, ch. 747) revised the Emergency Telephone Users Surcharge Act to include a new 988 surcharge. The 911 and 988 surcharges are imposed on service suppliers as a flat rate amount on each access line (wireline, wireless line, and Voice over Internet Protocol [VoIP] service line) in which a service user subscribes for use in California each month or partial month. Service suppliers must collect the 911 and 988 surcharges from service users, generally on the monthly service billings, and pay it to us. For the current 911 and 988 surcharge rates, see our Tax Rates – Special Taxes and Fees webpage.

If you are a service supplier that also sells prepaid mobile telephony services (MTS), you are required to collect the 911 and 988 surcharges on each retail sale of prepaid MTS and report them on your service supplier's return. For information about the application of the 911 and 988 surcharges implications on prepaid MTS, see Sellers.

Definitions

Service Supplier

“Service supplier” means a person supplying an access line to a service user in California.

Service User

“Service user” means any person who subscribes for the right to use an access line in California and is required to pay a surcharge under the law.

Access Line

Access line “Access line” means the following:

  • A wireline communications service line.
  • A wireless communications service line.
  • A VoIP service line.

General Exemptions

The following access lines are exempt from the 911 and 988 surcharges:

  • Access lines supplying lifeline service.
  • Access lines connected to public telephones.
  • Access lines for which no charges are billed by a service supplier to a service user.

Registration

Register with us for an Emergency Telephone Users Surcharge account through our Online Services by selecting Register for a Permit, License, or Account under the Registration section, then selecting Register for a New Business Activity. Visit our registration guide for a list of information you may need to complete your registration.

Who is Required to Register?

In general, you must register with us if you are:

  •  A telephonic service provider/service supplier,
  • Any person providing VoIP service line with access to the 911 emergency communications system and 988 suicide and crisis lifeline,
  • A service user that did not have the surcharge collected by a service supplier, or
  • A prepaid consumer that did not have the surcharge collected by a seller.

If you plan to provide telecommunication services within California, you must first register with the California Public Utilities Commission (CPUC). For information regarding CPUC requirements, visit the CPUC website or call 1-415-703-2782.

A service supplier may also need a California seller's permit if they make retail sales of merchandise (tangible personal property).

Updating Your Business Information

Update your business information through our Online Services system using your username and password. Simply login using your username and password and select the account for which you want to update. Select the More link under the I Want To section, then select the option you are requesting to update under Account Maintenance.

You may also notify us of any changes by:

911 Surcharge and 988 Surcharge Rates

The Office of Emergency Services (CalOES) is required to annually determine the 911 and 988 surcharges rate amounts by October 1 each year. The rate amounts remain in effect the following January through December. We will send a notice of rate amount changes to service suppliers prior to January 1 of the following year.

Visit our Tax Rates – Special Taxes and Fees webpage to view current and historical emergency telephone users surcharge rates.

For more rate information, see 911 Surcharge, 988 Surcharge, and Local Charge Rates.

Filing Your Return

As a service supplier, you are required to collect and pay the 911 and 988 surcharges from your customers and file a monthly return electronically.

The surcharge return is due on or before the last day of the second month following each reporting period. For example, if your reporting period is for the month of January, the return is due on March 31.

File your Emergency Telephone Users Surcharge Return and your Refusal to Pay Schedule (when applicable) through our Online Services. Simply log in and select the account for which you want to file a return, then select the File a Return link and follow the prompts.

If you do not have a username and password, select the Sign Up Now link under the Create a Username heading from the Online Services homepage.

Visit our Tutorials page for instructions on how to file your Emergency Telephone Users Surcharge Return online.

You must file your returns by the due date to be considered on time, even if no amount is owed. If the due date falls on a weekend or state holiday, we will consider returns filed by the next business day on time.

Billing Aggregator

Service suppliers may contract with a billing aggregator to collect some or all of your access line charges, including VoIP service line charges, and to pay the 911 and 988 surcharges to us.

Billing aggregators can file an Emergency Telephone Users Surcharge Return and make a payment for each service supplier separately or access the bulk file template to file and pay on behalf of multiple service suppliers in one submission using our Online Services system. To submit a bulk file and pay on behalf of multiple service suppliers, please contact us at STFRegUpdates@cdtfa.ca.gov to request bulk file access.

Payments

Make payments through our online services system. Simply login using your username and password and select the account for which you want to make a payment. Select More under the I Want To section. Then select Make a Payment and follow the prompts.

For additional information on convenient payment methods, see our payment guide.

Taxpayers with an estimated average monthly fee liability of $20,000 or more are required to pay amounts due by electronic funds transfer (EFT). We will notify you in writing if you are required to pay your fees electronically. For payment methods and payment deadline information, see Electronic Funds Transfer (EFT) – Frequently Asked Questions (FAQ's).

Payments must be received or postmarked by the due date to be considered on time. If the due date falls on a weekend or state holiday, payments postmarked or received by the next business day will be considered on time.

Please note: For credit card payments, a service fee of 2.3 percent of the transaction amount will be charged by the credit card processing vendor.

Filing a Claim for Refund

You may file a claim for refund through our online service system. Simply log in using your username and password and select the account for which you want to claim a refund. Select More under I Want To section, then select the Submit a Claim for Refund and follow the prompts.

You may also file your claim for refund by filing either:

Claims for refund must be in writing, state the reason for overpayment, specify the period for which you made the overpayment, and state the amount of the refund requested. For additional refund details, see Filing Claims for Refund – Special Taxes and Fees.

You may email the claim form or mail it to:

California Department of Tax and Fee Administration
Appeals and Data Analysis Branch (MIC: 33)
P.O. Box 942879
Sacramento, CA 94279-0033

Your refund claim filing deadline is whichever of the following dates occurs last:

  • Three years after the due date of the return on which you overpaid the surcharge
  • Six months after you overpaid the surcharge
  • Six months after the date a billing became final
  • Three years after we collected an involuntary payment, such as from a levy or lien

Be sure to file your claim for refund by the applicable deadline. If you don't file on time, we cannot consider your claim, even if you overpaid the surcharge. For additional information about filing a claim for refund, see publication 117, Filing a Claim for Refund.