Effective July 1, 2013, a 911 service charge is imposed on each retail purchase of prepaid wireless telecommunications service occurring in this State. Sellers of prepaid wireless telecommunications service shall collect the 911 service charge for prepaid wireless telecommunications service at the rate of sixty cents (0.60¢) from the consumer on each retail transaction occurring in this State. (Note the 911 service charge rate increases to sixty-five cents (0.65¢) for transactions occurring on or after July 1, 2018.) The 911 service charge for prepaid wireless telecommunications service is in addition to the sales tax imposed on the sale or recharge of prepaid telephone calling service under G.S. 105-164.4(4d). Sellers may deduct and retain from the 911 service charges it collects from consumers and remits to the Department of Revenue an administrative allowance of five percent (5%). Sellers are permitted to retain 100% of the service charge for the first 3 months of registration on or after July 1, 2013.
N.C. Gen. Stat. § 143B-1400 defines "prepaid wireless telecommunications service" as "[a] wireless telecommunications service that allows a caller to dial 911 to access the 911 system, which service must be paid for in advance and is sold in predetermined units or dollars of which the number declines with use in a known amount." N.C. Gen. Stat. § 143B-1400 defines "retail transaction" as "[t]he sale of prepaid wireless telecommunications service for any purpose other than resale." The service charge rate is set by the 911 Board and must be set at the same rate as the monthly service charge for nonprepaid service. The 911 Board must notify the Department of Revenue of a change in the rate for prepaid wireless telecommunications service at least 90 days before the change becomes effective. The Department of Revenue must provide notice of a change in the rate for prepaid wireless telecommunications service at least 45 days before the change becomes effective only on the Department's Web site. A change in the rate only becomes effective on July 1.
The 911 service charges are to be reported to the Department on the 911 Service Charge Prepaid Wireless Telecommunications Return, Form E-500L.
Additional Information for the 911 Service Charge
- Forms for 911 Service Charge for Prepaid Wireless Telecommunications Service
- Frequently Asked Questions
Technical References for the 911 Service Charge
Current Forms
| Form | Period | Description |
|---|---|---|
| NC-BR | Current | Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Machinery and Equipment Tax |
| E-500L | July 2018 - Current | 911 Service Charge Prepaid Wireless Telecommunications Return - Instructions, Frequently Asked Questions |
| E-588L | Current | Claim for Refund 911 Service Charge on Prepaid Wireless |
| E-595E | Current | Streamlined Sales and Use Tax Agreement Certificate of Exemption (Use this form for Resale Transactions) |
Prior Period Forms
| Form | Period | Description |
|---|---|---|
| E-500L | July 2013 - June 2018 | 911 Service Charge Prepaid Wireless Telecommunications Return - Instructions |