House committee substitute makes the following changes to 2nd edition. Deletes provision from previous edition which repealed GS 62A-40(15). Amends GS 62A-40(15) to include definitions for prepaid wireless telecommunications service (currently prepaid wireless telephone service) and retail transaction.
Rewrites GS 62A-43 to clarify that the monthly 911 service charge for service other than prepaid wireless telecommunications service is 70¢ or a lower amount set by the 911 Board. Provides for a 911 service charge on each retail purchase of prepaid wireless telecommunications service occurring in North Carolina in the amount of 70¢ for each retail transaction of prepaid wireless telecommunications service or a lower amount set by the 911 Board. Directs the 911 Board to set the service charge for prepaid wireless telecommunications service at the same rate as the monthly service charge for nonprepaid service. Directs that the 911 Board must notify the Department of Revenue of a change in the rate for prepaid wireless telecommunications service at least 90 days before the changes become effective. Requires the Department of Revenue to provide notice of a change in the rate at least 45 days before the change becomes effective only on the Department’s website.
Amends GS 62A-44(b) to clarify that all funds remitted by the Department of Revenue from prepaid wireless telecommunications service charges are allocated for monthly distributions to primary PSAPs pursuant to GS 62A-46 and grants to PSAPs pursuant to GS 62A-47. Clarifies that the 911 service charge for prepaid wireless telecommunications service is in addition to sales tax imposed, and that notice of the service charge must be separately stated on an invoice, receipt, or other reasonable notification to the consumer by the seller at the time of the retail transaction. Specifies the definition of a retail transaction occurring in the state.
Provides method for which a seller must remit the 911 service charge for prepaid wireless telecommunications service to the Department of Revenue. Provides, and details, that the administration, auditing, requests for review, making returns, promulgation of rules and regulations by the Secretary of Revenue, additional taxes and liens, assessments, refunds, and penalty provisions of Article 9 of GS Chapter 105 apply to the collection of the 911 service charge for prepaid wireless telecommunications service.
Removes provisions included in the previous edition regarding definitions in proposed GS 62A-59, instances when prepaid wireless telecommunications services are sold with one or more other products or services for a single, nonitemized price, and tax base measurement of the amount of prepaid wireless E 911 service charge that is collected by a seller.
Clarifies that sellers that collect the 911 service charge for prepaid wireless telecommunications service to retain all of the service charges collected in the first three calendar months beginning on or after July 1, 2013. Provides that the Department of Revenue may retain the cost of collection, up to $700,000, of the 911 service charges for prepaid wireless telecommunications service remitted from collections by sellers of the charge for the first 12 calendar months beginning on or after July 1, 2013.
Makes other technical, clarifying, and organizational changes to the act, including a clarifying change to the title.