Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 217 - Telecommunication Services › Rule 701-217.8 - Prepaid Wireless 911 Surcharge

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
The definitions in rule
				701-217.2 (423) apply to this
				rule. The following definitions are also applicable to this rule:
"Consumer"
means a person who purchases
				  prepaid wireless telecommunications service in a retail transaction.
"Department"
means the department of
				  revenue.
"Prepaid wireless 911 surcharge"
means the
				  surcharge that is required to be collected by a seller from a consumer in the
				  amount established under this rule.
"Provider"
means a person who provides
				  prepaid wireless telecommunications service pursuant to a license issued by the
				  Federal Communications Commission.
"Retail transaction"
means the purchase of
				  prepaid wireless telecommunications service from a seller for any purpose other
				  than resale. If more than one separately priced item of prepaid wireless
				  calling service is purchased by an end user, each item purchased shall be
				  deemed to be a separate retail transaction.
Items of prepaid wireless calling service include but are not
				  limited to prepaid wireless phones, prepaid wireless phone calling cards,
				  rechargeable prepaid wireless phones, rechargeable prepaid wireless phone
				  calling cards, and prepaid wireless service plans.
EXAMPLE 1: If a seller sells two prepaid wireless phone
				  calling cards, two retail transactions have occurred.
EXAMPLE 2: If a seller sells additional minutes for a
				  rechargeable prepaid wireless phone calling card that was purchased at an
				  earlier date, a retail transaction has occurred.
EXAMPLE 3: If a seller sells three separate one-month service
				  plans to a consumer during one sale, three retail transactions have
				  occurred.
EXAMPLE 4: If the consumer has the ability to purchase
				  additional minutes directly from a prepaid wireless phone, each time minutes
				  are purchased, a retail transaction occurs.
"Seller"
means a person who sells prepaid
				  wireless telecommunications service to another person.
(2)
Registration.
Each
				seller that sells prepaid wireless service must register according to the
				procedures established by the department. The department will make information
				regarding the procedures available to the public.
(3)
Collecting, filing, and
				remitting.
a. Each seller is
				responsible for collecting the applicable 911 surcharge from the consumer with
				respect to each retail transaction occurring in this state. A seller may
				determine whether the transaction occurs in this state by referring to the
				department rules on the sourcing of sales of prepaid wireless
				telecommunications service in paragraph 217.6(2)
"b."
More
				information is also contained in Iowa Code sections
				34A.7B(4),
				423.15 and 423.20.
b. The surcharge must be separately itemized
				on the invoice, receipt or other similar document, or otherwise disclosed to
				the consumer.
c. The prepaid
				wireless 911 surcharge is the liability of the consumer and not of the seller
				or any provider, except that the seller shall be liable to remit all prepaid
				wireless 911 surcharges that the seller collects from consumers as provided in
				paragraph 217.8(3)
"a,"
including all such surcharges that the
				seller is deemed to collect where the amount of the surcharge has not been
				separately stated on an invoice, receipt, or similar document provided to the
				consumer by the seller.
d. The
				amount of the prepaid wireless 911 surcharge 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, other surcharge, or other
				charge that is imposed by this state, any political subdivision of this state,
				or any intergovernmental agency.
e.
				The seller must complete a 911 Surcharge Schedule and the surcharge portion of
				the Iowa Sales Tax and Surcharge Return or IowaRetailer's Use Tax and Surcharge
				Return and file the information with the department.
f. The schedule, return and the collected
				surcharge are due at the times provided by Iowa Code chapter 423 with respect
				to the sales and use tax.
g. The
				seller may deduct and retain 3 percent of prepaid wireless 911 surcharges that
				are collected by the seller from consumers.
h. The seller is not required to collect the
				surcharge if a minimal amount of prepaid wireless telecommunications service is
				sold in conjunction with a prepaid wireless device for a single, nonitemized
				price. A minimal amount of service is any service denominated as $5 or less or
				ten minutes or less.
EXAMPLE: If a seller sells a prepaid wireless phone that
				  comes with 10 minutes of service, and the price of the service is not itemized,
				  the seller is not required to collect the surcharge. But if the seller sells a
				  prepaid wireless phone with 15 minutes of service, the seller must collect the
				  surcharge, regardless of whether the price of the service is itemized.