PREPAID WIRELESS/POINT OF SALE COLLECTION.

View NCGA Bill Details2011-2012 Session
Senate Bill 302 (Public) Filed Wednesday, March 9, 2011
IMPOSING A SERVICE CHARGE OF ONE AND TWO-TENTHS PERCENT ON THE PURCHASE OF PREPAID WIRELESS TELECOMMUNICATIONS SERVICE FOR ANY PURPOSE OTHER THAN RESALE OCCURRING IN THIS STATE, REQUIRING THAT THE SERVICE CHARGE BE COLLECTED BY THE SELLER OF PREPAID WIRELESS TELECOMMUNICATION SERVICE AND REMITTED TO THE DEPARTMENT OF REVENUE, AND PROVIDING THAT THE DEPARTMENT OF REVENUE SHALL TRANSFER ALL SERVICE CHARGES COLLECTED, MINUS THE COSTS OF COLLECTION, TO THE 911 FUND TO SUPPORT 911 SERVICES IN THE STATE.
Intro. by Hartsell, McKissick.

Status: Ref To Com On Finance (Senate Action) (Mar 10 2011)

Bill History:

S 302

Bill Summaries:

  • Summary date: Mar 9 2011 - More information

    Adds new Article 4, Prepaid Wireless E911 Service Charge, to GS Chapter 62A. Provides definitions for the following terms as used in proposed Article 4: (1) consumer--a person who makes a retail purchase of prepaid wireless communications service; (2) prepaid wireless E911 service charge--the charge that a seller is required to collect from a consumer in the amount established by this Article; (3) prepaid wireless telecommunications service--a wireless service that allows a caller to access the 911 system via dialing 911, service must be paid for in advance and is sold in predetermined units or dollars; (4) provider—provides prepaid wireless service under a license issued by the Federal Communications Commission (FCC); (5) retail transaction—the purchase of prepaid wireless service from a seller for any purpose other than resale; (6) seller-person selling prepaid wireless telecommunication; and (7) wireless telecommunication service—commercial mobile radio service as defined by 47 CFR Section 20.3, as amended.
    Imposes a service charge for prepaid wireless E911 service of 1.2% of the price of each retail transaction; however, authorizes the 911 Board to proportionately increase or reduce the prepaid E911 wireless service charge upon any increase or reduction to the monthly 911 service charge by the 911 Board under GS 62A-43(d). Provides formula for calculating the adjusted prepaid wireless E911 service charge.
    Requires the seller of prepaid wireless telecommunications service to collect the prepaid wireless E911 service charge from the consumer for each retail transaction occurring in this state. Requires disclosure of the amount of the service charge to the consumer. Defines when a retail transaction occurs. Directs the seller to remit the E911 service charges the seller collects to the Department of Revenue (Department) at the times and in the manner provided under Article 5 of GS Chapter 105. Permits the seller to retain an administrative allowance of 3% of the service charges it collects from consumers.
    Directs the department to establish registration and payment procedures for purposes of receiving remittances from sellers under proposed Article 4. Provides that the registration and payment procedures should substantially coincide with those procedures that apply to taxes imposed under Article 5 of GS Chapter 105.
    Provides guidelines for determining the service charge that applies to a prepaid wireless telecommunications service sold with one or more other products for a single, non-itemized price.
    Provides that the E911 service charge is the liability of the consumer, but provides that the seller is liable for remitting the service charges the seller collects to the Department. Also provides when the amount collected by a seller from the consumer as prepaid wireless E911 service charge is stated separately on an invoice, receipt, or similar document provided by the seller, the amount collected is not included in the base for measuring any tax, charge, surcharge, or other charge imposed by the state or any subdivision of the state or any governmental agency.
    Provides that each provider and seller or prepaid wireless telecommunications service is entitled to the limitation of liability provided in GS 62A-53. Prohibits imposing any E911 funding obligation in addition to the prepaid wireless E911 service charge imposed by proposed Article 4.
    Makes conforming changes to GS 62A-43 and repeals GS 62A-40(15) (defining prepaid wireless telephone service).
    Makes a conforming change, adding Article 5H, Prepaid Wireless E911 Service Charge, to GS Chapter 105.
    Effective January 1, 2012 and applies to all retail transactions occurring in this state, as those terms are defined in proposed Article 4, on or after that date.


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