SB 1481: Prepaid Mobile Telephony Services Surcharge Collection Act.

The Prepaid Mobile Telephony Services Surcharge Collection Act establishes a prepaid MTS surcharge, as defined, based upon a percentage of the sales price of each retail transaction that occurs in this state for prepaid mobile telephony services, as defined, that is imposed in lieu of any charges imposed pursuant to the Emergency Telephone Users Surcharge Act and specified Public Utility Commission surcharges. The act requires, on and after January 1, 2016, and before January 1, 2020, the prepaid MTS surcharge imposed by that act on a prepaid consumer to be collected by a seller, as defined, from each prepaid consumer at the time of each retail transaction that occurs in this state. The act specifies the circumstances for determining when a transaction occurs in the state.

This bill would make correct an erroneous cross-reference and make minor revisions in the requirements relative to imposition of the prepaid MTS surcharge and the circumstances for determining when a transaction occurs in the state.

The act requires every seller to register with the State Board of Equalization. The act, commencing January 1, 2017, exempts a seller, other than a direct seller, with de minimis sales of prepaid mobile telephony services of less than $15,000 during the previous calendar year from collecting the prepaid MTS surcharge, and requires the Department of Finance to annually review and adjust that de minimis sales threshold, as provided.

This bill would exempt from the registration requirement those sellers with de minimis sales of prepaid mobile telephony services, but would not prevent those sellers from registering with the board on a voluntary basis to collect and remit the surcharge.