31-4813. PREPAID WIRELESS TELECOMMUNICATIONS SERVICE EMERGENCY COMMUNICATIONS FEE. (1) As used in this section:
(a) "Consumer" means a person who purchases prepaid wireless telecommunications service in a retail transaction;
(b) "Prepaid wireless E911 fee" means the fee imposed by subsection (2)(a) of this section on prepaid wireless telecommunications service that is required to be collected by a seller from a consumer;
(c) "Prepaid wireless telecommunications service" means a wireless telecommunications service that allows a caller to dial 911 to access the 911 system, which service must be paid for in advance and is sold in predetermined units or dollars;
(d) "Provider" means a person that provides prepaid wireless telecommunications service pursuant to a license issued by the federal communications commission;
(e) "Retail transaction" means the purchase of prepaid wireless telecommunications service from a seller for any purpose other than resale;
(f) "Seller" means a person who sells prepaid wireless telecommunications service to another person;
(g) "Tax commission" means the Idaho state tax commission.
(2) (a) There is hereby imposed a prepaid wireless E911 fee in the amount of two and one-half percent (2.5%) of the sales price on each retail transaction.
(b) The prepaid wireless E911 fee shall be collected by the seller from the consumer with respect to each retail transaction occurring in this state. The amount of the prepaid wireless E911 fee shall be either separately stated on an invoice, receipt or other similar document that is provided to the consumer by the seller, or otherwise disclosed to the consumer.
(c) For purposes of paragraph (b) of this subsection, a retail transaction is considered to have occurred in Idaho if:
(i) The retail transaction is effected in person by the customer at a seller’s location in Idaho;
(ii) When subparagraph (i) of this paragraph does not apply, the prepaid wireless telecommunications service is delivered to the subscriber at an Idaho address provided to the retailer;
(iii) When subparagraphs (i) and (ii) of this paragraph do not apply, the retailer’s records that are maintained in the ordinary course of business indicate that the subscriber’s address is in Idaho and the records are not made or kept in bad faith;
(iv) When subparagraphs (i) through (iii) of this paragraph do not apply, the subscriber gives an Idaho address during the consummation of the sale, including the subscriber’s payment instrument if no other address is available, and the address is not given in bad faith;
(v) When subparagraphs (i) through (iv) of this paragraph do not apply, the subscriber’s mobile telephone number is associated with an Idaho location.
(d) The prepaid wireless E911 fee is the liability of the consumer and not of the seller or of any provider, except that the seller shall be liable to remit all prepaid wireless E911 fees that the seller collects or is required to collect from consumers as provided pursuant to the provisions of this section, including all such fees that the seller is deemed to collect where the amount of the fee has not been separately stated on an invoice, receipt or other similar document provided to the consumer by the seller.
(e) The amount of the prepaid wireless E911 fee that is collected by a seller from a consumer, if such amount is separately stated on an invoice, receipt or other similar document provided to the consumer by the seller, shall not be included in the base for measuring any tax, fee, surcharge or other charge that is imposed by this state, any political subdivision of this state or any intergovernmental agency.
(f) The prepaid wireless E911 fee shall be proportionately increased or reduced, as applicable, upon any change to the fees imposed pursuant to the provisions of sections 31-4804 and 31-4819, Idaho Code. The amount of the prepaid wireless E911 fee shall be the percentage calculated by adding the amounts authorized pursuant to the provisions of sections 31-4804 and 31-4819, Idaho Code, and then dividing such sum by fifty dollars ($50.00). Such increase or reduction shall be effective on the effective date of the change to the fees imposed pursuant to the provisions of sections 31-4804 and 31-4819, Idaho Code, or if later, the first day of the first calendar month to occur at least sixty (60) days after the enactment of the change to fees imposed pursuant to the provisions of sections 31-4804 and 31-4819, Idaho Code. The tax commission shall provide not less than thirty (30) days of advance notice of such increase or reduction on its website.
(g) When prepaid wireless telecommunications service is sold with one (1) or more other products or services for a single, nonitemized price, then the percentage specified in paragraph (a) of this subsection shall apply to the entire nonitemized price unless the seller elects to apply such percentage to:
(i) If the amount of the prepaid wireless telecommunications service is disclosed to the consumer as a dollar amount, such dollar amount; or
(ii) If the seller can identify the portion of the price that is attributable to the prepaid wireless telecommunications service by reasonable and verifiable standards from its books and records that are kept in the regular course of business for other purposes including, but not limited to, non-tax purposes, such portion. Provided however, if a minimal amount of prepaid wireless telecommunications service is sold with a prepaid wireless device for a single, nonitemized price, then the seller may elect not to apply the percentage specified in paragraph (a) of this subsection to such transaction. For purposes of this subparagraph, an amount of service denominated as ten (10) minutes or less, or five dollars ($5.00) or less, is minimal.
(3) (a) Prepaid wireless E911 fees collected by sellers shall be remitted to the tax commission at the times and in the manner provided by chapter 36, title 63, Idaho Code, with respect to the sales tax. The tax commission shall establish registration, reporting and payment procedures that substantially coincide with the registration and payment procedures that apply to the sales tax pursuant to the provisions of chapter 36, title 63, Idaho Code.
(b) A seller shall be permitted to deduct and retain three percent (3%) of prepaid wireless E911 fees that are collected by the seller from consumers.
(c) The following provisions of chapter 36, title 63, Idaho Code, with respect to sales tax shall apply to the prepaid wireless E911 fee:
(i) Audit and appeal procedures;
(ii) Collection, enforcement, penalties and interest; and
(iii) Statute of limitations and refunds of fees paid erroneously.
The tax commission shall have the authority to promulgate administrative rules applicable to the prepaid wireless E911 fee. Such rules shall, to the extent practicable, minimize administrative burdens on sellers by incorporating existing provisions of chapter 36, title 63, Idaho Code, that apply to audits, appeals, collection, enforcement, penalties, interest, statute of limitations and refunds of fees paid erroneously.
(d) The tax commission shall establish procedures by which a seller of prepaid wireless telecommunications service may document that a sale is not a retail transaction, which procedures shall substantially coincide with the procedures for documenting sale for resale transactions pursuant to the provisions of chapter 36, title 63, Idaho Code, with respect to the sales tax.
(e) The tax commission shall distribute revenue from the prepaid wireless E911 fees as follows:
(i) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized under this chapter by the tax commission shall be paid through the state refund account; and
(ii) Pay all remaining remitted prepaid wireless E911 fees over to the Idaho emergency communications fund provided for in section 31-4818(1), Idaho Code, within thirty (30) days of receipt.
The tax commission may deduct an amount, not to exceed two percent (2%) of remitted fees, to reimburse its actual costs of administering the collection and remittance of prepaid wireless E911 fees. The tax commission may also retain an amount, not to exceed seventy thousand dollars ($70,000), of remitted revenues in the fiscal year 2014 only for programming and one-time implementation costs.
(4) Each provider and seller of prepaid wireless telecommunications service is covered by the liability provisions of section 31-4812, Idaho Code.
(5) The prepaid wireless E911 fee imposed pursuant to this section shall be the only E911 funding obligation imposed with respect to prepaid wireless telecommunications service in this state, and no tax, fee, surcharge or other charge shall be imposed by this state, any political subdivision of this state or any intergovernmental agency, for E911 funding purposes, upon any provider, seller or consumer with respect to the sale, purchase, use or provision of prepaid wireless telecommunications service.
History:
[31-4813, added 2003, ch. 290, sec. 9, p. 791; am. 2007, ch. 340, sec. 4, p. 999; am. 2013, ch. 224, sec. 2, p. 525.]