Prepaid Wireless Telecommunication Service Surcharges 911 Surcharge
PREPAID WIRELESS TELECOMMUNICATION SERVICE SURCHARGES 911 SURCHARGE
SR-43
Basis and Purpose
The basis for this rule is § 39-21-112(1), § 29-11-101, § 29-11-102.5, § 29-11-102.7, § 40-17-102, § 40-17-103 C.R.S. The purpose of this rule is to establish registration, collection, and payment procedures, as required by statute, to collect and remit the enhanced 911 and telecommunications relay service surcharges, to calculate the amount on which the surcharges are imposed, and to establish other necessary rules.
(1)General Rule. A telecommunications relay service surcharge (“TRS Charge”) and an enhanced 911 charge (“E911 Charge”) (collectively referred to as the “Service Charges”) are imposed on every sale and purchase of prepaid wireless telecommunications service occurring in Colorado. § 29-11-102.5(2)(b)(II), C.R.S. sets forth the criteria for determining when a sale of prepaid telecommunications service occurs in Colorado. The seller of prepaid telecommunications service shall state to the consumer or separately state on an invoice, receipt or other similar document the service charge amount. The seller of such prepaid telecommunications service shall collect the Service Charges from the customer and report and remit the Service Charges to the Department on prescribed forms.
(2)Registration. A seller responsible for collecting, reporting, and remitting the Service Charges shall register with the Department. A seller shall open a business tax account or give such notice prior to selling prepaid wireless telecommunications service.
(a)A seller shall register to collect, report, and remit the Service Charges by opening a business tax account with the Department.
(b)If the seller has an existing business tax account with the Department, the seller shall notify the Department in writing that it will collect, report, and remit the Service Charges.
(c)Failure to register for the Service Charges shall not relieve seller from liability for collecting, reporting, and remitting the Service Charges.
(3)Wholesale Sales. The sales tax rules governing wholesale sales shall also govern the transactions on which the Service Charges are assessed.
(4)Filing and payment due date Reporting and Payment.
(a)The return report and payment of for the wireless 911 surcharge Service Charges shall be due on the same date as the retailer seller’s sales tax return. (Oon or before the 20th of the following month).
(b)If the seller retailer does not have is not required to file a sales tax return, the return and payment for the wireless 911 surcharge Service Charges shall be filed quarterly and due the same date as a quarterly sales tax return. (Oon or before the 20th of the following month).
(c)Seller may deduct from the Service Charges collected a vendor’s service fee at a rate set forth in § 29-11-102.5(3)(b)(I) and § 29-11-102.7(3)(b), C.R.S., except as provided in paragraph (4)(e), below. The seller may retain both the E911 vendor’s service fee and TRS vendor’sservice fee.
(d)The Service Charges are not included in the purchase price, defined in § 39-26-102(7), C.R.S., subject to any state, special district, or state-administered city or county sales tax or other government fees.
(e)Late Filing or Late Payment. If any the seller retailer is late in filing the return or for the wireless 911 surcharge paying the Service Charges or delinquent in payment, in addition to any other penalties, the seller retailer shall not be allowed to retain for the filing period, the vendor’sservice fee any amounts specified under § 29-11-102.5(3)(b)(I) or §29-11-102.5(3)(b)(II)(A), § 29-11-102.7(3)(b), C.R.S.
(6)Government Entities and Exempt Entities. Government entities and other entities that are exempt from sales tax (e.g., charitable organizations) are not exempt from the Service Charges. because the exemption for such entities is for sales and use taxes and the Service Charges are not a sales or use tax. The TRS service charge shall not be imposed on the provider or the eligible subscriber with respect toof the federal Lifeline service provided to the subscriber.
(7)Calculation of Sales Tax and wireless 911 c Service Charges on Bundled or Packaged Prices Phones that Includes Prepaid Wireless Telecommunication Service in the Purchase Price. For sales of prepaid wireless telecommunications services that are packaged or bundled with include the sale of other items, such as a mobile or wireless phones, insurance, data, etc., that include prepaid wireless, the amount paid for the prepaid wireless telecommunication service amount is subject to the 911 surcharge Service Charges and the phone is subject to the sales tax. If the amount of paid for the prepaid wireless telecommunications service is not separately stated from the other items being purchased on an invoice, receipt, or other similar document, the seller shall calculate the Service Charges on an imputed stand alone price for the prepaid wireless telecommunications service. If no equivalent standalone prepaid wireless telecommunications service is offered, the calculation shall be calculated only the fair market value of the prepaid wireless telecommunications service sold. The internal books and records of the seller must reflect the fair market value of the prepaid wireless telecommunications service on which the Service Charge was assessed. the total purchase price will be subject to the wireless 911 surcharge Service Charge and the total purchase price will be subject to sales tax. (The wireless 911 charge is not subject to sales tax.)
(a)Example.when the wireless is NOT separately stated: A customer purchases a phone for $50 that includes 100 minutes of prepaid wireless telecommunications service for $50. The retailer also offers standalone 100 prepaid wireless minutescharges $10 for prepaid wireless for $10 telecommunications service for 100 minutes sold without the purchase of a mobile phone. The wireless 911 fee Service Charges shallwill be calculated on the 100 prepaid wireless minutes valued at $5010 and the sales tax will be calculated on $50. , the total will equal the $50 price plus the 911 charge plus sales tax.
(b) Example when the wireless IS separately stated: A customer purchases a phone that includes wireless for $50 and $20 is separately stated as the wireless amount. The sales tax will be calculated based on $30 and the wireless 911 surcharge will be calculated based on $20
Cross Reference(s)
1.To register to remit these Service Charges to the Department, go towww.Colorado.gov/CBE or fill out Department Form CR 0100AP and send it to the Department.
2. To determine whether a sale is a wholesale sale, see § 39-26-102(19), C.R.S. and Department Rule 39-26-102.19.
3. See Department Publication FYI Sales 1, How to Document Sales to Retailers, for additional information a seller may use to document that a transaction is not a retail sale.
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