Beginning January 1, 2016, sellers of prepaid
wireless phone cards and services will be required to collect a new surcharge from
their customers. The Prepaid Mobile Telephony Services (MTS) Surcharge is
generally owed on prepaid wireless plans, minutes, airtime cards, data, certain cell
phones bundled with prepaid minutes, and
other similar products. Visit the Board of Equalization’s (BOE) website at www.boe.ca.gov/mts for details.
If you sell these types of products, you are
required to register for a prepaid MTS account on the BOE’s website. Registration will be available beginning December 21, 2015.
Sellers must file their prepaid MTS return and make payment electronically on a
quarterly basis.
Companies that are registered with the
California Public Utilities Commission as a telecommunication service provider
have different registration and filing requirements. For details, visit www.boe.ca.gov/mts and click the “Direct Sellers” tab.
Like sales tax, prepaid MTS surcharge rates may
vary by location throughout California and sellers will be required to itemize the
rate charged on a receipt or invoice. Rate information will be posted on the
BOE’s
website by December 1, 2015.
For more details about the prepaid MTS
program, visit www.boe.ca.gov/mts. You
may also call the BOE’s Customer Service Center at 1-800-400-7115 (TTY: 711)
Monday through Friday, 8:00 a.m. to 5:00
p.m. PST, excluding state holidays.
