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Business Taxes Law Guide—Revision 2025
Emergency Telephone Users Surcharge Act
Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration—Business Taxes
Chapter 5.6. Emergency Telephone Users Surcharge Act.
Article 1. Imposition of Surcharge and Application of Chapter
Regulation 2437
Regulation 2437. Imposition of and Liability for the 911 and 988 Surcharges.
Reference: Sections 41007.2, 41007.3, 41016.5, 41020, 41021, 41022, 41023, 41024, 41028, 41040 and 41052, Revenue and Taxation Code.
(a) A 911 surcharge is imposed on each access line for each month or part thereof for which a service user subscribes with a service supplier. A separate 988 surcharge is imposed on each access line for each month or part thereof for which a service user subscribes with a service supplier. A service user that subscribes for wireline communications service at a physical location subscribes with a service supplier for the same number of access lines as the total number of concurrent outbound calls that can be placed to the 911 emergency communications system from that location at a single point of time using the service. A service user that subscribes for wireless communication service subscribes with a service supplier for the same number of access lines as the number of wireless communications service line numbers that allow the end user to make an outbound communication to the 911 emergency communications system assigned to the service user as part of the service. A service user that subscribes for VoIP service subscribes with a service supplier for the same number of access lines as the total number of concurrent outbound calls that can be placed to the 911 emergency communications system at a single point of time using the service.
(1) Every service supplier shall register with the Department under this regulation by completing an application for registration with the Department. Every application for registration shall provide the service supplier's identifying information, contact information, business information, ownership information, and representative information.
(2) A service supplier that supplies an access line to a service user in this state shall collect the 911 and 988 surcharges imposed on that access line from the service user at the time it collects its billing from the service user. However, if the stations or lines of more than one service supplier are utilized in furnishing telephone communication services to a service user, the service supplier that bills the customer shall collect the surcharges from the customer.
(A) Except as provided in subdivision (a)(2)(B), the surcharges required to be collected by the service supplier shall each be added to and stated separately in its billings to the service user.
(B) A service supplier may elect to combine the 911 and 988 surcharges into a single-line item on the service user billing. If the service supplier elects to combine the surcharges, the combined surcharge shall be labeled as the "911/988 Surcharge" on the service user's bill.
(3) A service user in this state is liable for the 911 and 988 surcharges until they have been paid to this state or a service supplier registered with the Department to collect the 911 and 988 surcharges. The 911 and 988 surcharges a service supplier is required to collect from a service user under subdivision (b)(2) constitute debts owed by the service supplier to this state. A billing agent or billing aggregator, including another service supplier, that collects the 911 and 988 surcharges on behalf of the service supplier is not liable for the 911 and 988 surcharges.
(4) A service supplier is required to report the 911 and 988 surcharges it is required to collect from service users to the Department and remit the surcharges to the Department in accordance with Regulation 2440. A billing agent or billing aggregator, including another service supplier, that collects the surcharges on behalf of the service supplier is not required to report or remit the surcharges.
(5) Each registered service supplier may authorize one billing aggregator, in writing, to prepare and file returns and remit 911 and 988 surcharges on its behalf.
(A) An authorized billing aggregator may file returns and remit surcharges on behalf of one or more registered service suppliers while the service suppliers' authorizations are in effect. However, the billing aggregator must file a separate return for each service supplier with the Department, which includes the service supplier's name, address, and account number and the amounts of the 911 and 988 surcharges remitted.
(B) If a service supplier only authorizes a billing aggregator to report and remit a portion of the 911 and 988 surcharges it is required to report and remit, the service supplier must report and remit the remainder of the surcharges directly to the Department.
(b) A 911 surcharge is imposed on the purchase of prepaid MTS in a retail transaction that occurs in the state. A separate 988 surcharge is also imposed on the purchase of prepaid MTS in a retail transaction that occurs in the state. The surcharges are required to be collected by the seller from the prepaid consumer at the time of each retail transaction in this state.
(1) Every seller in this state shall register with the Department under this regulation by completing an application for registration with the Department. A seller is in this state if the seller has a physical presence within the exterior limits of the State of California or a territory within those limits owned by or ceded to the United States of America, including, but not limited to owning or leasing real or tangible personal property in this state, maintaining, occupying, or using a place of business in this state, or having representatives or agents operating in this state on the seller's behalf.
(A) Every application for registration shall provide the seller's identifying information, contact information, business information, ownership information, and representative information.
(B) A seller, other than a service supplier, that is not in this state shall register with the Department as provided in Regulation 2460.
(2) Every consumer of prepaid MTS in this state is liable for the 911 and 988 surcharges until they have been paid to the Department, unless a receipt, as provided by Regulation 2441, is obtained showing that the surcharges were paid to a seller that has an emergency telephone account or a prepaid MTS account.
(3) The 911 and 988 surcharges a seller is required to collect from a prepaid consumer under this subdivision constitute debts owed by the seller to this state.
(4) A seller, including a service supplier, is required to report and remit the 911 and 988 surcharges it is required to collect from prepaid consumers to the Department in accordance with Regulation 2440.
History—New regulation filed July 16, 2025, and operative October 1, 2025 (Register 2025, No. 30).