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Business Taxes Law Guide—Revision 2024
Prepaid Mobile Telephony Services Surcharge Collection Act
Revenue and Taxation Code
Division 2. Other Taxes
Part 21. Prepaid Mobile Telephony Services Collection Act
Chapter 2. The Prepaid Mobile Telephony Services Surcharge
Section 42018
42018. Surcharge and local charges if prepaid mobile telephony services sold in combination with other services or products for single price. [Repealed. Became inoperative January 1, 2021 pursuant to the provisions of Ch. 642, Stats. 2019.]
Text of Section Inoperative as of January 1, 2021
(a) Except as provided in subdivisions (b) and (c), if prepaid mobile telephony services are sold in combination with services or products that are not subject to local charges for a single price, then the local charges shall apply to the entire price unless the seller can identify the services or products that are not subject to local charges from its books and records kept in the ordinary course of business.
(b) If prepaid mobile telephony services are sold with a mobile telephone service communication device, commonly termed a cellular telephone, for a single, nonitemized price, then the local charges shall apply to the entire nonitemized price, except if the purchase price for the cellular phone component of the bundled charge is disclosed to the prepaid consumer on a receipt, invoice, or other written or electronic documentation provided to the prepaid consumer, the local charges may be calculated excluding the separately stated price of the cellular telephone.
(c) If a minimal amount of prepaid mobile telephony service is sold for a single, nonitemized price with a mobile telephony service communications device, the seller shall not apply the local charges to the transaction. For these purposes, a service allotment denominated as 10 minutes or less, or five dollars ($5) or less, is a minimal amount.
(d) Notwithstanding Section 42024, this section shall remain operative until January 1, 2021, and shall be repealed as of that date.
History—Added by Stats. 2014, Ch. 885 (AB 1717), in effect September 30, 2014. Stats. 2019, Ch. 642 (SB 344), in effect January 1, 2020, added "that are not subject to local charges" after "products", deleted "prepaid MTS surcharge and" after "the", added the balance of the sentence after "price." in subdivision (a). deleted "prepaid MTS surcharge and" from subdivision (b) and (c) before "local charges" and added subdivision (d). Stats. 2019, Ch. 642 (SB 344), in effect January 1, 2020, added "that are not subject to local charges " after "products ", deleted "prepaid MTS surcharge and " after "the ", added the balance of the sentence after "price. " in subdivision (a). deleted "prepaid MTS surcharge and " from subdivision (b) and (c) before "local charges " and added subdivision (d).