Does your small business sell prepaid wireless communication services such as mobile phones or phone cards preloaded with a dollar amount or minutes?
Beginning December 1, 2017, changes to New York State Tax Law expands the current surcharge on postpaid wireless services and also requires sellers of prepaid wireless services to collect and submit quarterly returns on those services.
The state surcharge is .90 per retail sale, and counties, as well as New York City, may impose a local surcharge of .30 per retail sale (if enacted). Sellers of prepaid wireless services are allowed to retain a small portion of the collections as an administrative fee. The tax must be stated separately on receipts or statements as a public safety communication surcharge.
For more information about the new surcharge, please visit the Department of Taxation and Finance prepaid wireless communication webpage.
