E911 Prepaid Wireless Fee
The 2013 Idaho Legislature passed House Bill 193 to impose a 2.5% fee on sales of prepaid wireless service. The E911 fee will be collected at the retail point of sale and paid to the Tax Commission. The law goes into effect January 1, 2014.
What is prepaid wireless?
Prepaid wireless is a mobile device where network access is purchased without a contract before use. For example, a customer can prepay for an hour of access to the wireless network. Once the hour of use has been consumed, the mobile device will no longer have access to the wireless network. This type of service is often referred to as pay-as-you-go, pay-as-you-talk, or prepay. The new fee doesn't apply to sales of wireless devices.
How much is the E911 prepaid wireless fee?
The fee is 2.5% of the price of the service.
When is the fee in effect?
Retailers must start collecting the fee beginning January 1, 2014.
What businesses must register to collect the E911 prepaid wireless fee?
All businesses that sell prepaid wireless services must collect the fee and pay it to the Idaho State Tax Commission. This doesn't include businesses which only sell other types of phone services such as international phone cards, fixed-line telephone service, contract-based wireless service, or voice over internet protocol (VOIP) service.
If my business needs to collect the fee, where do I register?
How do I pay the amount I collect?
After you're registered, you'll receive a permit for each business location and the tax returns required for reporting and paying. You can send one payment by check to the Tax Commission for both your state sales tax and the E911 fee and include both returns in the same envelope. You can also e-pay this fee at tax.idaho.gov/epay.
How often do I have to file a return?
By default, your filing cycle will match your sales and use tax account. For example, if you file your sales and use tax return quarterly, you'll need to file your E911 return quarterly. However, when you register, you may choose to file less often by selecting the semiannual filing cycle. The E911 return will be mailed in the same envelope as your sales tax coupon unless you e-file your sales tax return. You'll be able to e-file the E911 return in 2015.
Whom do I contact if I have questions?
If you have questions about registration, payments, or amounts owed on your account, call the Tax Commission. If you have questions about what this fee is used for, please contact the Idaho E911 Emergency Communications Commission.