Commissioner's Directive #39
June 2012
(Replaces Directive #39 Dated May
2010)
SUBJECT: Enhanced
Prepaid Wireless Telecommunications Service Charge
DIGEST OF CHANGES:
Prepaid wireless telecommunications service charge is increased from $.25 to
$.50 and deletes sunset provision of prepaid wireless telecommunications
service charge
EFFECTIVE:
July 1, 2012
INTRODUCTION
IC 36-8-16.6 provides an enhanced prepaid wireless telecommunications service charge to be collected from users of prepaid wireless telecommunications services by sellers and to be remitted to the Indiana Department of Revenue by the sellers.
DEFINITIONS
"Consumer" means a person who purchases prepaid
wireless telecommunications service from a seller.
"Department" means the Indiana Department of
Revenue.
"Enhanced prepaid wireless charge" means the
charge that a seller is required to collect from a consumer.
"Prepaid user" means a user of prepaid wireless
telecommunications service who is issued an Indiana telephone number or an
Indiana identification number for the service, or a user who purchases prepaid
wireless telecommunications service in a retail transaction that is sourced to
Indiana.
"Prepaid wireless telecommunications service"
means a prepaid wireless calling service that allows a user of the service to
reach emergency services by dialing the digits 911.
"Provider" means a person or an entity that offers
prepaid wireless telecommunications service.
"Retail transaction" means the purchase of prepaid
wireless telecommunications service from a seller for any purpose other than
resale.
"Seller" means a person who sells prepaid wireless
telecommunications service to another person.
PREPAID CHARGE IMPOSED
The enhanced prepaid wireless charge on each retail
transaction is $0.50. The board, with legislative approval, may increase the
charge to ensure adequate revenue for the board to fulfill its duties and
obligations.
The charge is not imposed on any consumer that is the
federal government or an agency of the federal government.
SELLER RESPONSIBILITIES
A seller is required to collect the charge from the consumer
with respect to each retail transaction and to disclose to the consumer the
amount of the charge. The seller may separately state the amount of the charge
on an invoice, a receipt, or a similar document that the seller provides to the
consumer. If the seller does not separately state the amount of the charge on
an invoice, a receipt, or a similar document, the seller is still required to
remit to the Department the charges collected from the consumer.
A seller is required to remit the charges collected to the
Department on the same date that the seller's sales tax return is due. The
seller shall report and remit the charges collected using the Department's
online tax filing program (INtax). A seller can register for INtax by going to
www.intax.in.gov.
A seller can deduct 1% of the enhanced prepaid wireless
charges that the seller collects from consumers if the seller reports and
remits the charges collected in a timely manner.
A seller is not liable for damages to a person resulting
from or incurred in connection with providing or failing to provide wireless
911 services or identifying or failing to identify the telephone number,
address, or name associated with a person or device that accesses or attempts
to access wireless 911 services.
DEPARTMENT OF REVENUE RESPONSIBILITIES
The Department shall deposit all enhanced prepaid wireless
charges in the Statewide 911 fund, and the board shall administer money
deposited in the fund in the same manner as wireless emergency enhanced 911
fees under IC 36-8-16.7-32.
The Department may audit any seller in the same manner as
with respect to the collection and remittance of the sales tax under IC 6-2.5. An audit
shall be conducted jointly by the Department and the board.
In accordance with the procedures established concerning
listed taxes, the Department shall establish procedures that allow a seller to
document when a sale of a prepaid wireless telecommunications service is not a
retail transaction.
The amount of the enhanced prepaid wireless charge that is
collected by a seller from a consumer may not be included in the sales tax base
or the utility receipts tax base.
