Laws, Regulations, and Annotations

Business Taxes Law Guide—Revision 2025

BTLG Table of Contents > Prepaid Mobile Telephony Services Regulations > Regulation 2460

Prepaid Mobile Telephony Services Regulations

Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes
Chapter 5.7. Local Charges on Prepaid Mobile Telephony Services

Regulation 2460

Regulation 2460. Administration.

Reference: Sections 6455, 41040, 42004, 42010, 42010.7, 42014, 42020, 42021, 42022, 42101, 42101.5, 42101.6, 42101.7, 42101.8, 42101.9, 42102, 42102.5, and 42103 and 42103.2, Revenue and Taxation Code.

(a) Definitions. For purposes of this chapter (Local Charges on Prepaid Mobile Telephony Services Regulations, commencing with Regulation 2460), the following terms shall have the following meanings:

(1) "Account" means an account issued and maintained by the Department to uniquely identify a seller that is registered with the Department pursuant to Regulation 2437 or this regulation.

(A) An "emergency telephone account" shall be issued and maintained for a direct seller that is registered with the Department pursuant to Regulation 2437 or this regulation.

(B) A "prepaid MTS account" shall be issued and maintained for a seller, other than a direct seller, that is registered with the Department pursuant to Regulation 2437 or this regulation.

(2) "Business Information" means information the Department deems necessary to determine if a person is required to register with the Department under Regulation 2437 or this regulation, determine if the person is required to remit the 911 and 988 surcharges and local charges it collects by electronic funds transfer, assign the person a reporting period, and determine how to obtain access to the person's books and records. Such information includes, but is not limited to, the name of the person's business, the addresses of the person's business locations, the date the person's business started or will start, the business's business activities, the business's projected revenue, the name and branch location of the bank or other financial institution where the business maintains its accounts, and the name and contact information of at least one individual the Department may contact to obtain access to the business's books and records.

(3) "Contact Information" means information the Department deems necessary to contact and communicate with a person registering under Regulation 2437 or this regulation and with that person's authorized representative(s), if any. Such information includes, but is not limited to, a current mailing address, email address, and telephone number.

(4) "Department" means the California Department of Tax and Fee Administration.

(5) "Direct Seller" means a prepaid MTS provider or service supplier, as defined in Revenue and Taxation Code section 41007, that makes a sale of prepaid MTS directly to a prepaid consumer for any purpose other than for resale in the regular course of business.

A direct seller includes, but is not limited, to any of the following:

(A) A telephone corporation, as defined by section 234 of the Public Utilities Code.

(B) A person that provides "interconnected Voice over Internet Protocol (VoIP) service," as that term is defined in section 285 of the Public Utilities Code.

(C) A "retailer engaged in business in this state," as defined by Revenue and Taxation Code section 6203, that is a member of the same commonly controlled group, as defined in Revenue and Taxation Code section 25105, or that is a member of the same combined reporting group, as defined in paragraph (3) of subdivision (b) of section 25106.5 of title 18 of the California Code of Regulations, as an entity described in subparagraph (A) or (B).

(6) "Identifying Information" means information the Department deems necessary to specifically identify a person registering with the Department under Regulation 2437 or this regulation. Such information includes, but is not limited to, the person's name, the person's type (e.g., individual, partnership, limited liability company, corporation, etc.), and the person's federal Employer Identification Number, and may also include, but is not limited to, the person's driver's license number or other government-issued identification card number or entity number issued by the California Secretary of State.

(7) "In This State" means within the exterior limits of the State of California and includes all territory within those limits owned by or ceded to the United States of America.

(8) "Local Charge" or "Local Charges" means the utility user taxes on the consumption of prepaid MTS, as described in Revenue and Taxation Code section 42102, and charges that apply to prepaid MTS for access to communication services or to local "911" emergency telephone systems, as described in Revenue and Taxation Code section 42102.5.

(9) "Local Jurisdiction" or "Local Agency" means a city, county, or city and county, which includes a charter city, county, or city and county.

(10) "Mobile Data Service" has the same meaning as defined in section 224.4 of the Public Utilities Code.

(11) "Mobile Telephony Service" or "MTS" has the same meaning as defined in section 224.4 of the Public Utilities Code.

(12) "988 surcharge" means the 988 surcharge imposed under chapter 2 of the Emergency Telephone Users Surcharge Act (commencing with Revenue and Taxation Code section 41020).

(13) "911 surcharge" means the 911 surcharge imposed under chapter 2 of the Emergency Telephone Users Surcharge Act (commencing with Revenue and Taxation Code section 41020).

(14) "Ordinance" refers to an ordinance of a local jurisdiction or local agency imposing a local charge, including any local enactment relating to the filing of a claim for refund or other claim arising under the ordinance.

(15) "Ownership Information" means information the Department deems necessary to identify the owners of an entity or business. Such information may include, but is not limited to, the owners' names and contact information.

(16) "Person" includes any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, assignee for the benefit of creditors, trustee, trustee in bankruptcy, syndicate, the United States, this state, any city, county, city and county, municipality, district, or other political subdivision of the state, or any other group or combination acting as a unit.

(17) "Prepaid Consumer" means a person who purchases prepaid MTS in a retail transaction.

(18) "Prepaid Mobile Telephony Services" or "Prepaid MTS" means the right to utilize a mobile device for mobile telecommunications services or information services, including the download of digital products delivered electronically, content, and ancillary services, or both telecommunications services and information services, that must be purchased in advance of usage in predetermined units or dollars.

For these purposes, "telecommunications service" and "information service" have the same meanings as defined in section 153 of title 47 of the United States Code.

(19) "Prepaid MTS Provider" means a telephone corporation, as defined in section 234 of the Public Utilities Code that provides prepaid MTS.

(20) "Regulation" means a section in title 18 of the California Code of Regulations.

(21) "Representative Information" means information the Department deems necessary to verify that the individual submitting an application for registration is the person registering with the Department or that the individual or individuals submitting an application for registration on behalf of another person is or are authorized to register such person. Such information includes, but is not limited to, each individual's name, title, and contact information.

(22) "Retail Transaction" means the purchase of prepaid MTS, either alone or in combination with mobile data or other services, from a seller for any purpose other than resale in the regular course of business. For these purposes, a "purchase" means any transfer of title or possession, exchange, or barter, conditional or otherwise of prepaid MTS for a consideration, including such a transfer of more than a minimal amount of prepaid MTS, as defined in Revenue and Taxation Code section 42101.9, sold for a single, nonitemized price, with a mobile telephony service communications device. Multiple items of prepaid MTS may be purchased at one time in a single retail transaction.

(23) A "retail transaction occurs in the state" under any of the following circumstances:

(A) The prepaid consumer makes the retail transaction in person at a business location in the state (point-of-sale transaction).

(B) If subdivision (a)(23)(A) is not applicable, the prepaid consumer's address is in the state (known-address transaction). A known-address transaction occurs in the state under any of the following circumstances:

(i) The retail sale involves shipping of an item to be delivered to, or picked up by, the prepaid consumer at a location in the state.

(ii) If the prepaid consumer's address is known by the seller to be in the state, including if the seller's records maintained in the ordinary course of business indicate that the prepaid consumer's address is in the state and the records are not made or kept in bad faith.

(iii) The prepaid consumer provides an address during consummation of the retail transaction that is in the state, including an address provided with respect to the payment instrument if no other address is available and the address is not given in bad faith.

(C) If an address is not available to the seller to determine whether any of the circumstances in subdivision (a)(23)(B) exist, the transaction will be deemed to be a known-address transaction occurring in this state if the mobile telephone number is associated with a location in this state.

(24) "Sale" means any transfer of title, possession, exchange, or barter, conditional or otherwise of prepaid MTS for a consideration, including such a transfer of a mobile telephone service communication device when sold with prepaid MTS for a single, nonitemized price, and for other than a minimal amount of prepaid MTS.

(25) "Seller" means a person, including a direct seller, that sells prepaid MTS to a person in a retail transaction.

(26) "Surcharges" or "911 and 988 surcharges" means the 911 surcharge related to 911 service for periods prior to January 1, 2023, and means two separate charges, the 911 surcharge related to 911 service and the 988 surcharge related to 988 service, for periods on and after January 1, 2023.

(b) Registration.

(1) Every seller in this state shall register with the Department under Regulation 2437.

(2) Except as provided in subdivision (b)(3), a seller that is not in this state shall register with the Department under this regulation by completing an application for registration with the Department. Every application for registration shall provide the seller's identifying information, contact information, business information, ownership information, and representative information.

(3) A seller, other than a direct seller, that is not in this state and is not required to collect local charges pursuant to subdivision (e) of Regulation 2461 is not required to register with the Department. However, such a seller may voluntarily register with the Department by completing an application for registration with the Department.

(c) Payment of Local Charges by Purchasers. Every consumer of prepaid MTS in this state is liable for any local charges subject to collection under this chapter until those amounts are paid to the Department, unless a receipt, as provided by subdivision (d), is obtained from a registered seller.

(d) Receipts. Each seller required to collect local charges from a prepaid consumer under this chapter must give a receipt to each prepaid consumer at the time of the retail transaction with a separate statement of any local charges, even if the prepaid MTS is sold for a price that includes all applicable taxes and fees. For purposes of this subdivision, prepaid MTS is sold on a tax-included basis if the seller discloses to the consumer in the receipt that the price of the prepaid MTS includes applicable taxes and fees.

For the purposes of this regulation, a receipt need not be in any particular form and may consist of an invoice, receipt, or other similar document provided to the prepaid consumer, but must show the following:

(1) The name and place of business of the seller.

(2) The date on which the prepaid MTS was sold.

(3) The amount of any local charges collected from the prepaid consumer, unless otherwise disclosed electronically to the prepaid consumer at the time of the retail transaction.

(e) Payment and Returns.

(1) Payment. Except as otherwise provided in subdivision (e)(4) and (e)(6), the local charges subject to collection under this chapter are due and payable to the Department quarterly on or before the last day of the next month following each calendar quarter.

(2) Returns. Notwithstanding Revenue and Taxation Code section 55040, and except as otherwise provided in subdivision (e)(6), every person liable for local charges under this chapter must file a return with the Department through the Department's website quarterly, on or before the last day of the next month following each calendar quarter.

(3) Reporting Periods. Notwithstanding subdivisions (e)(1) or (2), the Department, if it deems it necessary in order to insure payment to or facilitate the collection by the state of the amount of taxes, may require returns and payments of local charges required to be reported to the Department pursuant to the Local Prepaid MTS Collection Act, for quarterly periods other than calendar quarters, or for reporting periods other than quarterly periods.

(4) Seller Reimbursement Retention. A seller, that is not a direct seller, may deduct and retain a reimbursement amount equal to two percent of the amounts it collects from prepaid consumers for local charges.

Such reimbursement is to be taken on the return for the corresponding reporting period in which the sale of the prepaid MTS occurs. If a seller claims only some or none of the reimbursement amount during the corresponding reporting period in which the sale occurred, the seller is not allowed to claim a credit for the remaining unclaimed reimbursement on a subsequent return. Rather, the seller must file a claim for refund.

(5) Electronic Funds Transfer. Notwithstanding Revenue and Taxation Code section 55050, any person required, or that elects, to remit its sales and use tax liabilities due by electronic funds transfer (pursuant to Revenue and Taxation Code section 6479.3), other than a direct seller, must also remit local charges by electronic funds transfer.

For purposes of this section, "electronic funds transfer" shall have the same meaning as defined in Regulation 1707.

(6) Direct Sellers. A direct seller shall remit the 911 and 988 surcharges and local charges on retail transactions of prepaid MTS as follows:

(A) The 911 and 988 surcharges shall be remitted to the Department with a return as provided by Regulation 2440.

(B) Local charges shall be remitted to the local jurisdiction or local agency imposing the local charge, and not to the Department. Remittance of the local charges shall be separately identified from any other local taxes or other charges that are remitted to the local jurisdiction or local entity imposing the local tax or other charge.

(f) Records. A seller of prepaid MTS shall maintain and make available records for examination on request by the Department or its authorized representatives in the manner set forth in Regulation 4901.

(g) Relief from Liability. In addition to the provisions set forth in Regulation 4902, a seller may be relieved of liability for local charges as set forth in subdivision (g)(1) and (2):

(1) Point-of-Sale Transaction. A seller is not liable for any additional local charges, and is not required to refund any amounts collected from the prepaid consumer when all of the following apply:

(A) The seller relies in good faith on the information provided by the Department to match the location of the point-of-sale transaction to the applicable local charges, and

(B) The seller collects such amounts from the prepaid consumer and remits such amounts to the Department.

(2)Known-Address Transaction. A seller is not liable for any additional local charges and is not required to refund any amounts collected from the prepaid consumer when all of the following apply:

(A) The seller relies in good faith with due diligence on credible information to match the five-digit postal zip code of the prepaid consumer's address to the applicable local charges, and

(B) The seller collects such amounts from the prepaid consumer and remits such amounts to the Department.

The provisions of subdivision (g)(2) apply even if the five-digit postal zip code of the prepaid consumer's address corresponds to more than one local charge.

(h) Innocent Spouse Relief. A spouse or registered domestic partner requesting relief from liability for any local charge, interest, and penalties shall be relieved from such liability where all the requirements set forth in Regulation 35055 are met.

(i) Local Charges.

(1) A local charge imposed by a local agency shall be collected from a prepaid consumer by a seller at the time prepaid MTS is sold in a retail transaction that occurs in the state, pursuant to the Local Prepaid MTS Collection Act (commencing with Revenue and Taxation code section 42100) and this chapter, if on or before September 1, 2015, the local agency entered into a contract with the Department pursuant to Revenue and Taxation Code section 42101.5.

In the event a local agency did not enter into a contract with the Department by September 1, 2015, the local agency may enter into a contract with the Department, pursuant to Revenue and Taxation Code section 42101.5, on or before December 1, with collection of its local charge to commence April 1 of the next calendar year.

(2) New Local Charges. When a local agency or local jurisdiction adopts a new local charge, after September 1, 2015, the local agency shall enter into a contract with the Department, pursuant to Revenue and Taxation Code section 42101.5, on or before December 1, with collection of the local charge to commence April 1 of the next calendar year.

(3) Increases in Local Charges. When a local agency or local jurisdiction increases an existing local charge required to be collected under subdivision (i)(1) or (2), the local agency shall provide the Department written notice of the increase, on or before December 1, with collection of the increase in the local charge to commence April 1 of the next calendar year.

(4) Advance Written Notification. When a local charge required to be collected under this subdivision is about to expire or decrease in rate, the local agency or local jurisdiction imposing the local charge shall notify the Department in writing of the upcoming change, not less than 110 days prior to the date the local charge is scheduled to expire or decrease. If timely written notice is provided, the change shall become operative on the first day of the calendar quarter commencing after the specified date of expiration or decrease in rate.

If advance written notice is provided prior to the specified date of expiration or decrease in rate, but less than 110 days prior to that date, the change shall become operative on the first day of the calendar quarter commencing more than 60 days after the specified date of expiration or decrease.

(5) Inaccurate Rate Posted on Department's Website. When a local agency or local jurisdiction notifies the Department in writing that the rate posted on the Department's website (posted rate) for a local charge imposed by that local agency or local jurisdiction is inaccurate, including where the local charge was reduced or eliminated and the local agency or jurisdiction failed to provide advance written notice pursuant to subdivision (i)(4), the recalculated rate applicable to the local agency or local jurisdiction shall become operative on the first day of the calendar quarter commencing more than 60 days from the date the Department receives the local agency's or local jurisdiction's written notification that the posted rate is inaccurate. The local agency or local jurisdiction shall promptly notify the Department in writing of any such discrepancies with the posted rate that are known or discovered by the local agency or local jurisdiction.

(j) Posting Rates.

The Department shall post on its website, for each local jurisdiction, the combined total of the rate(s) of local charges, as calculated pursuant to Revenue and Taxation Code sections 42102 and 42102.5, that each local jurisdiction has adopted and provided written notice to the Department of, on or before December 1 of each year, as provided in subdivision (i). The Department shall post the combined total of the rates of local charges on its website by March 1, of each year. The posted rates of local charges shall be the rates that apply to all retail transactions during the calendar year beginning April 1 following the posting, unless there is a later change in a rate.

History—Adopted October 25, 2016, effective January 11, 2017.

Amended August 29, 2018. Changes without regulatory effect to replace the definition of "Board" with the definition of "Department" in subdivision (a)(1); replace "Board" with "Department" in subdivisions (a)(2), (3), (6), (13), (17), (21), and (22), (b), (c), (e)(1), (2), (3), (6), (f), (g)(1)(A) and (B), (2)(B), (i), and (j)(1) and (3); reformat the first and second paragraphs in subdivision (b) as subdivision (b)(1) and (3) respectively; add new subdivision (b)(2) and replace "A" with "Except as provided in subdivision (b)(2), a" at the beginning of reformatted subdivision (b)(1); replace "Board's" with "Department's" in subdivisions (e), (i)(5), and (j)(2); and add references to Revenue and Taxation Code sections 42010.7 and 42101.7 to the regulation's reference note.

Amendments to chapter and regulation filed July 16, 2025, and operative October 1, 2025 (Register 2025, No. 30). The amendments to the chapter added "Local Charges on" to the chapter's title. The amendments to the regulation add "Local Charges on" to subdivision (a); added new subdivision (a)(1), renumbered old subdivision (a)(1) as new subdivision (a)(4), and renumbered old subdivision (a)(4) as new subdivision (a)(5); replaced "that" with "if," "to collect the prepaid MTS surcharge and local charges" with "under … regulation," and "prepaid MTS surcharge" with "911 and 988 surcharges" in subdivision (a)(2); replaced "for a Prepaid MTS Account" with "under … regulation" and inserted ", email address," in subdivision (a)(3); inserted "California" in new subdivision (a)(4); deleted old subdivision (a)(5), which provided "'Emergency telephone users surcharge' means surcharges authorized pursuant to the Emergency Telephone Users Surcharge Act (commencing with Revenue and Taxation Code section 41001) to be collected from prepaid consumers of mobile telephony services"; replaced "for an Prepaid MTS Account" with "with … regulation" and "Taxpayer" with "Employer" and inserted "and" before "the" in subdivision (a)(6); inserted "on the consumption of prepaid MTS," and "that apply to prepaid MTS" in and deleted the text after "42102.5" from subdivision (a)(8), which provided ", the collection of which are subject to the provisions of the Local Prepaid Mobile Telephony Services Collection Act (commencing with Revenue and Taxation Code section 42100)"; added new subdivisions (a)(12) and (13) and renumbered old subdivisions (a)(12), (13), (14), (15), and (16), as new subdivisions (a)(14), (15), (16), (17), and (18) respectively; replaced "and/or access mobile" with "a mobile device for mobile" and deleted "and are utilized by means of a mobile device" from after "dollars" in renumbered subdivision (a)(18); deleted old subdivisions (a)(17), which provided "'Prepaid MTS Account' means an account issued and maintained by the Department to uniquely identify a seller, other than a direct seller, of prepaid MTS who is registered with the Department pursuant to the Prepaid MTS Surcharge Act to collect the Prepaid MTS surcharge and local charges from prepaid consumers and remit them to the Department"; renumbered old subdivision (a)(18) as new subdivision (a)(19); deleted old subdivision (a)(19), (20), and (21), which provided "(19) 'Prepaid MTS Surcharge' means the surcharge imposed under the Prepaid Mobile Telephony Services Surcharge Collection Act (commencing with Revenue and Taxation Code section 42001) that consists of the emergency telephone users surcharge and the Public Utilities Commission surcharges, as calculated pursuant to subdivision (b) of Revenue and Taxation Code section 42010, that is required to be collected by a seller from a prepaid consumer. (20) 'Public Utilities Commission' or 'Commission' means the Public Utilities Commission created by section 1 of article XII of the California Constitution. (21) 'Public Utilities Commission Surcharges' means surcharges authorized by the Public Utilities Commission to be billed and collected from end-use consumers of wireless communications services, and of which the Commission provides the Department with notice pursuant to section 319 of the Public Utilities Code, including: (A) The California High-Cost Fund-A Administrative Committee Fund program surcharge (Section 275.6 of the Public Utilities Code). (B) The California High-Cost Fund-B Administrative Committee Fund program surcharge (Section 739.3 of the Public Utilities Code). (C) The Deaf and Disabled Telecommunications Program Administrative Committee Fund surcharge (Section 2881 of the Public Utilities Code). (D) The California Teleconnect Fund Administrative Committee Fund program surcharge (Section 280 of the Public Utilities Code). (E) The California Advanced Services Fund program surcharge (Section 281 of the Public Utilities Code). (F) The Moore Universal Telephone Service Act (Article 8 (commencing with section 871) of chapter 4 of part 1 of division 1 of the Public Utilities Code). (G) Public Utilities Commission reimbursement fees imposed pursuant to chapter 2.5 (commencing with section 401) of part 1 of division 1 of the Public Utilities Code"; added new subdivision (a)(20); renumbered old subdivisions (a)(22) and (23) as new subdivisions (a)(21) and (22), respectively; deleted "such" from before "a transfer," replaced "a mobile telephone service communication device (commonly termed a cell phone) when purchased with prepaid MTS for a single, nonitemized price, and for other than a minimal amount of prepaid MTS" with "more … device," and inserted the last sentence in renumbered subdivision (a)(22); added new subdivision (a)(23); deleted "(commonly termed a cell phone)" from after "device" in subdivision (a)(24); inserted ", including a directly seller," in subdivision (a)(25); added new subdivisions (a)(26) and (b)(1) and renumbered old subdivision (b)(1) as new subdivision (b)(2); replaced "2" with "3," ", other than a direct seller," with "that … state," "for a Prepaid MTS Account" with "with … regulation," and "applicant's" with "seller's" and deleted "for a Prepaid MTS Account" from before "shall provide" in new subdivision (b)(2); deleted old subdivision (b)(2), which provided "Commencing January 1, 2017, a seller, other than a direct seller, that is not required to collect the Prepaid MTS surcharge pursuant to Revenue and Taxation Code section 42010.7 and local charges pursuant to Revenue and Taxation Code section 42101.7 is not required to register for a Prepaid MTS Account under subdivision (b)(1). Nothing prevents a seller, other than a direct seller, from registering for a Prepaid MTS Account under subdivision (b)(1) on a voluntary basis to collect and remit the surcharge even if the seller meets the de minimis sales threshold provided by Revenue and Taxation Code sections 42010.7 and 42101.7"; replaced all the old text in subdivision (b)(3), which provided "Direct sellers are required to be registered with the Department under the Emergency Telephone Users Surcharge Act (commencing with Revenue and Taxation Code section 41001). Direct sellers are not required to register for a Prepaid MTS Account"; deleted "Prepaid MTS Surcharge and" from before "Local" and "the prepaid MTS surcharge and" from before "any," and inserted "subject … chapter" in subdivision (c); deleted "the prepaid MTS surcharge and" from after "collect" and ", or otherwise disclosed electronically to the prepaid consumer" from before ", but," inserted "under this chapter," and replaced "the combined prepaid MTS surcharge and" with "any" after "statement of" and "are" with "is" before "sold on" in subdivision (d); replaced "service" with "prepaid MTS" in subdivision (d)(2); replaced all the old text in subdivision (d)(3), which provided "A combined amount of the prepaid MTS surcharge and local charges collected from the prepaid consumer. If the prepaid MTS were not sold to the prepaid consumer on a tax- included basis, the receipt must also separately state the sales price subject to the prepaid MTS surcharge and local charges"; replaced "prepaid MTS surcharge and local charges" with "local … chapter" in subdivision (e)(1); deleted "the prepaid MTS surcharge and" from before "local" and "online" from after "return," and inserted "under this chapter" in subdivision (e)(2); deleted "(e)" from before "(2)" and "and payment of the prepaid MTS surcharge" from after "returns," inserted ", if … taxes," and "payments of," and replaced "Prepaid Mobile Telephony Services Surcharge" with "Local Prepaid MTS" in subdivision (e)(3); replaced "the prepaid MTS surcharge and local charges, on a pro rata basis, according to that portion of the revenues collected for each of the following: (A) The emergency telephone users surcharge. (B) The Public Utilities Commission surcharges. (C) The local charges" with "local charges" in subdivision (e)(4); deleted "the prepaid MTS surcharge and" from after "remit" and replaced "California Code of Regulations, title 18, section 1707, Electronic Funds Transfer" with "Regulation 1707" in subdivision (e)(5); replaced "prepaid MTS surcharge" with "911 and 988 surcharges" and inserted "on … MTS" in subdivision (e)(6); replaced all the old text in subdivision (e)(6)(A), which provided "That portion of the prepaid MTS surcharge that consists of the Public Utilities Commission surcharges shall be remitted to the Public Utilities Commission, and not to the Department, for those retail transactions with a prepaid consumer in the state, along with any reports required by the Public Utilities Commission"; deleted old subdivision (e)(6)(B), which provided "That portion of the prepaid MTS surcharge that consists of the emergency telephone users surcharge shall be remitted to the Department pursuant to the Emergency Telephone Users Surcharge Act (commencing with Revenue and Taxation Code section 41001) with a return filed online with the Department through the Department's website for those retail transactions with a prepaid consumer in the state"; renumbered old subdivision (e)(6)(C) as new subdivision (e)(6)(B); deleted ", if applicable," from after "Local charges" in, and deleted the entire third sentence from new subdivision (e)(6)(B), which provided "For direct sellers, the portion of the prepaid MTS surcharge that consists of the emergency telephone users surcharge is due and payable to the Department, as provided by California Code of Regulations, title 18, section 2422, Returns, Reporting and Payment"; inserted "records," deleted ", records" from after "representatives," and replaced "California Code of Regulations, title 18, section 4901, Records" with "Regulation 4901" in subdivision (f); replaced "California Code of Regulations, title 18, section 4902, Relief from Liability" with "Regulation 4902" and deleted "the" from before "liability," "the prepaid MTS surcharge and" from before "local," and "(g)" from before "(2)" in subdivision (g); deleted ""prepaid MTS surcharge or" from before "local" in subdivisions (g)(1) and (2) and (h); deleted the comma from after "charges" in subdivision (g)(1); replaced "A" with "The" in subdivisions (g)(1)(A) and (B) and (g)(2)(A) and (B); deleted "prepaid MTS surcharge and" from before "local" in subdivisions (g)(1)(A) and (2)(A); replaced "California Code of Regulations, title 18, section 4903, Innocent Spouse or Registered Domestic Partner Relief from Liability," with "Regulation 35055" in subdivision (h); replaced "Ordinances in Effect as of September 1, 2015. On and after January 1, 2016, a" with "A," "the" with "a" before "prepaid consumer," "same time and in the same manner as the prepaid MTS surcharge is collected under the Prepaid Mobile Telephony Services Surcharge Collection Act (commencing with Revenue and Taxation Code section 42001), provided that," with "time … if," "enters" with "entered," "or local jurisdiction does" with "did," and "the" with "its," and deleted "on prepaid mobile telephony services" from before "shall" and the last sentence in subdivision (i)(1), which provided "Thereafter, all subsequently enacted local charges, increases to local charges, or other changes thereto, shall become operative pursuant to paragraphs (2), (3), (4) and (5) of this subdivision"; replaced ", after September 1, 2015," with "required … (2)," and inserted "increase in the" in subdivision (i)(3); inserted "required … subdivision" and "but … date," replaced "The" with "If timely written notice is provided, the," and deleted "less than 110 days" from between "provided" and "prior" in subdivision (i)(4); deleted "scenarios" from after "including" in subdivision (i)(5); deleted "and Calculation of Combined" from the title of subdivision (j) and subdivisions (j)(1) and (2), which provided "(1) Calculation of Prepaid MTS Surcharge Rate. The prepaid MTS surcharge rate shall be annually calculated by the Department by no later than November 1 of each year commencing November 1, 2015, by adding the following: (A) The surcharge rate reported pursuant to subdivision (d) of Revenue and Taxation Code section 41030; and (B) The Public Utilities Commission's reimbursement fee and telecommunications universal service surcharges, established by the Public Utilities Commission pursuant to subdivisions (a) and (b) of Section 319 of the Public Utilities Code. The prepaid MTS surcharge rate calculated pursuant to this subdivision shall be the prepaid MTS surcharge rate, exclusive of any applicable local charges, that applies to all retail transactions during the calendar year beginning January 1 following the calculation. (2) Calculation of Combined Rate. The combined total of the prepaid MTS surcharge rate calculated pursuant to subdivision (j)(1), and the rate(s) of local charges imposed as of September 1, 2015, that are required to be collected by a seller from a prepaid consumer on and after January 1, 2016, shall be posted on the Department's website by December 1, 2015. The posted combined rate shall be the rate that applies to all retail transactions during the calendar year beginning January 1, 2016, unless there is a later change in the combined rate"; reformatted old subdivision (j)(3) as new subdivision (j) by replacing "(3) New Local Charges and Increases to Existing Local Charges. After September 1, 2015, the" with "The" at the beginning of old subdivision (j)(3); deleted "the rates of the prepaid MTS surcharge and" from before "the rate(s)" and "of the prepaid MTS surcharge and rate(s)" from before "of local charges on," and replaced "combined total of the rates of the prepaid MTS surcharge and rate(s) of local charges shall be the rate that applies" with "rates of local charges shall be the rates that apply" and "the combined" with "a" before "rate" in reformatted subdivision (j); replaced "Sections 42020 and" with "Section" in the authority note; and replaced "42004, 42010, 42010.7, 42014, 42020, 42021, 42022" with "6455, 41040," "42101.7" with "42101.6, 42101.8, 42101.9," and "and 42103" with ", 42103 and 42103.2" in the reference note.