California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 5.7 - Prepaid Mobile Telephony Services › Section 2460 - Administration

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Definitions.
				For purposes of this chapter (Prepaid Mobile Telephony Services Regulations,
				commencing with Regulation 2460), the following terms shall have the following
				meanings:
(1) "Department" means the
				Department of Tax and Fee Administration.
(2) "Business information" means information
				the Department deems necessary to determine that a person is required to
				register with the Department to collect the prepaid MTS surcharge and local
				charges, determine if the person is required to remit the prepaid MTS surcharge
				and local charges it collects by electronic funds transfer, assign the person a
				reporting period, and determine how to obtain access to the person's books and
				records. Such information includes, but is not limited to, the name of the
				person's business, the addresses of the person's business locations, the date
				the person's business started or will start, the business's business
				activities, the business's projected revenue, the name and branch location of
				the bank or other financial institution where the business maintains its
				accounts, and the name and contact information of at least one individual the
				Department may contact to obtain access to the business's books and
				records.
(3) "Contact information"
				means information the Department deems necessary to contact and communicate
				with a person registering for a Prepaid MTS Account and with that person's
				authorized representative(s), if any. Such information includes, but is not
				limited to, a current mailing address and telephone number.
(4) "Direct seller" means a prepaid MTS
				provider or service supplier, as defined in Revenue and Taxation Code section
				41007,
				that makes a sale of prepaid MTS directly to a prepaid consumer for any purpose
				other than for resale in the regular course of business.
A direct seller includes, but is not limited, to any of the
				  following:
(A) A telephone
				corporation, as defined by section
				234
				of the Public Utilities Code.
(B) A
				person that provides "interconnected Voice over Internet Protocol (VoIP)
				service," as that term is defined in section
				285
				of the Public Utilities Code.
(C) A
				"retailer engaged in business in this state," as defined by Revenue and
				Taxation Code section
				6203,
				that is a member of the same commonly controlled group, as defined in Revenue
				and Taxation Code section
				25105,
				or that is a member of the same combined reporting group, as defined in
				paragraph (3) of subdivision (b) of section
				25106.5 of title 18 of the
				California Code of Regulations, as an entity described in subparagraph (A) or
				(B).
(5) "Emergency
				telephone users surcharge" means surcharges authorized pursuant to the
				Emergency Telephone Users Surcharge Act (commencing with Revenue and Taxation
				Code section
				41001)
				to be collected from prepaid consumers of mobile telephony services.
(6) "Identifying information" means
				information the Department deems necessary to specifically identify a person
				registering for a Prepaid MTS Account. Such information includes, but is not
				limited to, the person's name, the person's type (e.g., individual,
				partnership, limited liability company, corporation, etc.), the person's
				federal Taxpayer Identification Number, and may also include, but is not
				limited to, the person's driver's license number or other government-issued
				identification card number or entity number issued by the California Secretary
				of State.
(7) "In this state" means
				within the exterior limits of the State of California and includes all
				territory within those limits owned by or ceded to the United States of
				America.
(8) "Local charge" or
				"local charges" means the utility user taxes as described in Revenue and
				Taxation Code section
				42102,
				and charges for access to communication services or to local "911" emergency
				telephone systems, as described in Revenue and Taxation Code section
				42102.5,
				the collection of which are subject to the provisions of the Local Prepaid
				Mobile Telephony Services Collection Act (commencing with Revenue and Taxation
				Code section
				42100).
(9) "Local jurisdiction" or "local agency"
				means a city, county, or city and county, which includes a charter city,
				county, or city and county.
(10)
				"Mobile data service" has the same meaning as defined in section
				224.4
				of the Public Utilities Code.
(11)
				"Mobile telephony service" or "MTS" has the same meaning as defined in section
				224.4
				of the Public Utilities Code.
(12)
				"Ordinance" refers to an ordinance of a local jurisdiction or local agency
				imposing a local charge, including any local enactment relating to the filing
				of a claim for refund or other claim arising under the ordinance.
(13) "Ownership information" means
				information the Department deems necessary to identify the owners of an entity
				or business. Such information may include, but is not limited to, the owners'
				names and contact information.
(14)
				"Person" includes any individual, firm, partnership, joint venture, limited
				liability company, association, social club, fraternal organization,
				corporation, estate, trust, business trust, receiver, assignee for the benefit
				of creditors, trustee, trustee in bankruptcy, syndicate, the United States,
				this state, any city, county, city and county, municipality, district, or other
				political subdivision of the state, or any other group or combination acting as
				a unit.
(15) "Prepaid consumer"
				means a person who purchases prepaid MTS in a retail transaction.
(16) "Prepaid mobile telephony services" or
				"prepaid MTS" means the right to utilize and/or access mobile
				telecommunications services or information services, including the download of
				digital products delivered electronically, content, and ancillary services, or
				both telecommunications services and information services, that must be
				purchased in advance of usage in predetermined units or dollars and are
				utilized by means of a mobile device.
For these purposes, "telecommunications service" and
				  "information service" have the same meanings as defined in section
				  153 of title 47 of the United
				  States Code.
(17) "Prepaid
				MTS Account" means an account issued and maintained by the Department to
				uniquely identify a seller, other than a direct seller, of prepaid MTS who is
				registered with the Department pursuant to the Prepaid MTS Surcharge Act to
				collect the Prepaid MTS surcharge and local charges from prepaid consumers and
				remit them to the Department.
(18)
				"Prepaid MTS provider" means a telephone corporation, as defined in section
				234
				of the Public Utilities Code, that provides prepaid MTS.
(19) "Prepaid MTS surcharge" means the
				surcharge imposed under the Prepaid Mobile Telephony Services Surcharge
				Collection Act (commencing with Revenue and Taxation Code section
				42001)
				that consists of the emergency telephone users surcharge and the Public
				Utilities Commission surcharges, as calculated pursuant to subdivision (b) of
				Revenue and Taxation Code section
				42010,
				that is required to be collected by a seller from a prepaid consumer.
(20) "Public Utilities Commission" or
				"Commission" means the Public Utilities Commission created by section
				1 of article XII of the California
				Constitution.
(21) "Public
				Utilities Commission surcharges" means surcharges authorized by the Public
				Utilities Commission to be billed and collected from end-use consumers of
				wireless communications services, and of which the Commission provides the
				Department with notice pursuant to section
				319
				of the Public Utilities Code, including:
(A)
				The California High-Cost Fund-A Administrative Committee Fund program surcharge
				(Section
				275.6
				of the Public Utilities Code).
(B)
				The California High-Cost Fund-B Administrative Committee Fund program surcharge
				(Section
				739.3
				of the Public Utilities Code).
(C)
				The Deaf and Disabled Telecommunications Program Administrative Committee Fund
				surcharge (Section
				2881
				of the Public Utilities Code).
(D)
				The California Teleconnect Fund Administrative Committee Fund program surcharge
				(Section
				280
				of the Public Utilities Code).
(E)
				The California Advanced Services Fund program surcharge (Section
				281
				of the Public Utilities Code).
(F)
				The Moore Universal Telephone Service Act (Article 8 (commencing with section
				871) of chapter 4 of part 1 of
				division 1 of the Public Utilities Code).
(G) Public Utilities Commission reimbursement
				fees imposed pursuant to chapter 2.5 (commencing with section
				401) of part 1 of division 1 of
				the Public Utilities Code.
(22) "Representative information" means
				information the Department deems necessary to verify that the individual
				submitting an application for registration is the person registering with the
				Department or that the individual or individuals submitting an application for
				registration on behalf of another person is or are authorized to register such
				person. Such information includes, but is not limited to, each individual's
				name, title, and contact information.
(23) "Retail transaction" means the purchase
				of prepaid MTS, either alone or in combination with mobile data or other
				services, from a seller for any purpose other than resale in the regular course
				of business. For these purposes, a "purchase" means any transfer of title or
				possession, exchange, or barter, conditional or otherwise of prepaid MTS for a
				consideration, including such a transfer of a mobile telephone service
				communication device (commonly termed a cell phone) when purchased with prepaid
				MTS for a single, nonitemized price, and for other than a minimal amount of
				prepaid MTS.
(24) "Sale" means any
				transfer of title, possession, exchange, or barter, conditional or otherwise of
				prepaid MTS for a consideration, including such a transfer of a mobile
				telephone service communication device (commonly termed a cell phone) when sold
				with prepaid MTS for a single, nonitemized price, and for other than a minimal
				amount of prepaid MTS.
(25)
				"Seller" means a person that sells prepaid MTS to a person in a retail
				transaction.