AN ACT IMPOSING A SERVICE CHARGE ON EACH RETAIL TRANSACTION 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 TELECOMMUNICATIONS 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. Summarized in Daily Bulletin 3/30/11, 5/18/11, and 6/3/11. Enacted June 13, 2011. Effective July 1, 2013, except as otherwise provided.
Bill Summaries: H571 PREPAID WIRELESS/POINT OF SALE COLLECTION.
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Summary date: Jun 13 2011 - View Summary
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Bill H 571 (2011-2012)Summary date: Jun 3 2011 - View Summary
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 Deletes provision from previous edition which repealed GS 62A-40(15).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.
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Bill H 571 (2011-2012)Summary date: May 18 2011 - View Summary
House committee substitute makes the following changes to 1st edition. Amends GS 62A-43(b) to provide that the monthly service charge for 911 service is not imposed on prepaid wireless service, effective when the provision becomes law.
Rewrites GS 62A-43(b), as amended by this act, to specify that the monthly service charge for 911 service for prepaid wireless service will be collected as provided in Article 4 of GS Chapter 62A, effective July 1, 2013. Amends proposed GS 62A-60(a) to set a prepaid wireless E911 service charge of 70¢ (or a lower amount set by the 911 Board) on each retail transaction occurring in North Carolina (previously 1.2% of each retail transaction). Makes other clarifying changes. Amends proposed GS 62A-60(e) to direct the 911 Board to set the prepaid wireless E911 service charge at the same rate as established under GS 62A-43(d) (previously, directed the Board to proportionately increase or decrease the service charge according to a specified calculation).
Allows sellers that collect prepaid wireless E911 service charges to retain all of the services charges collected in the first three calendar months after the effective date of the act. Amends GS 62A-60(c) to increase the percentage of fees retained by such retailers from 3% to 5%, after the first three months. Changes the effective date of the act to July 1, 2013 (previously January 1, 2012). Makes a conforming change to the title.
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Bill H 571 (2011-2012)Summary date: Mar 30 2011 - View Summary
Identical to S 302, filed 3/9/11.
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.