Emergency Rule Concering Prepaid Wireless Service Charge

The Louisiana Department of Revenue (LDR) has adopted an Emergency Rule related to the service charge on sales of prepaid wireless telecommunications authorized by Act 531 of the 2009 Regular Session of the Legislature. The Emergency Rule, LAC 61:I.5401, is available on the LDR website using the link provided.

Retailers must collect the two percent service charge on sales of prepaid wireless service beginning January 1, 2010.  This Emergency Rule shall be effective January 1, 2010, and shall remain in effect until the expiration of the maximum period allowed under the Administrative Procedure Act or the adoption of the final Rule, whichever comes first.

This emergency rule was originally published on October 20, 2009, and was re-published on December 20, 2009, in essentially the same language. The emergency rule was re-published on December 20 in order that the Louisiana Department of Revenue will be in compliance with the requirements of R.S. 49:953(B)(2) that emergency rules be published in the Louisiana Register within 60 days of their proposed effective dates.

Comments

Revenue Information Bulletin No. 09-053: Prepaid Wireless Service Charge

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.

Comments

Prepaid wireless service fee takes effect January 1, 2010


 

Louisiana Administrative Code 61:I.5401 – Act 531 of the 2009 Regular Session of the Legislature imposed a service charge upon the sales of prepaid wireless telecommunications. In accordance with the emergency provisions of R.S. 49:953(B) of the Administrative Procedure Act, which allows the Department of Revenue to use emergency procedures to establish rules, and R.S. 47:1511, which allows the department to make reasonable rules and regulations, the Secretary hereby finds that imminent peril to the public welfare exists and accordingly adopts the following Emergency Rule. This Emergency Rule shall be effective January 1, 2010 and shall remain in effect until the expiration of the maximum period allowed under the Administrative Procedure Act or the adoption of the final Rule, whichever comes first.

This Emergency Rule is necessary to allow the secretary to provide needed information to Louisiana taxpayers regarding the collection and remittance of the prepaid wireless 911 service charge as provided by R.S. 33:9101.1. The effective date of this new law is January 1, 2010. The Department of Revenue is charged with the responsibility of administering the prepaid wireless 911 service charge.

Comments

LAC 61:I.5401 – Prepaid Wireless 911 Service Charge

The Louisiana Department of Revenue has adopted an Emergency Rule related to the service charge on sales of prepaid wireless telecommunications authorized by Act 531 of the Regular Session of the 2009 Louisiana Legislature.  The Emergency Rule is LAC 61:I.5401.

This Emergency Rule is necessary to allow the secretary to provide needed information to Louisiana taxpayers regarding the collection and remittance of the prepaid wireless 911 service charge as provided by R.S. 33:9101.1. The effective date of this new law is January 1, 2010. The Department of Revenue is charged with the responsibility of administering the prepaid wireless 911 service charge.

Under Act 531, retailers must collect the two percent service charge on sales of prepaid wireless service beginning January 1, 2010.  This Emergency Rule shall be effective January 1, 2010, and shall remain in effect until the expiration of the maximum period allowed under the Administrative Procedure Act or the adoption of the final Rule, whichever comes first.

Read the full text of LAC 61:I.5401 at revenue.louisiana.gov.

Comments