The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) No. 09-053, which explains a 2 percent service charge that applies to purchases of prepaid wireless services.
Louisiana Revised Statute 33:9109.1, as enacted by Act 531 of the Regular Session of the 2009 Louisiana Legislature, imposes a service charge on the purchase of prepaid wireless telecommunications service. This service charge has been imposed to maintain effective and efficient 911 systems across the state and to be a source of funding for the upcoming deployment of enhanced 911 services. The effective date of Act 531 is January 1, 2010.
Beginning on January 1, 2010, a consumer’s retail purchase of prepaid wireless telecommunications service will incur a 2 percent service charge. Prepaid wireless telecommunication service is defined as a wireless telecommunication service that is paid for in advance and is sold in predetermined units or dollars of which the number declines with use in a known amount. Prepaid wireless telecommunications service gives the caller the ability to dial 911 to access the 911 system. Prepaid wireless telecommunications service includes the sale of the following to a consumer:
- Cellular phones preloaded with minutes or units of air time or sold with rebates for airtime;
- Calling cards for cellular phones preloaded with minutes or units of air time; and
- The recharging of a reusable cellular phone calling card or the cellular phone itself with additional minutes or units of air time.