911 Service Charge for Prepaid Wireless Telecommunications Service
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 fifty-five cents (0.55¢) from the consumer on each retail transaction occurring in this State. 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%).
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.
Technical References for the 911 Service Charge
- NC General Statutes §§ 143B-1403 & 143B-1414
- 911 Service Charge for Prepaid Wireless Telecommunications Service Bulletin
- Important Notice: 911 Service Charge Decreases to Fifty-Five Cents (55¢) 04-01-23
- Frequently Asked Questions (7-27-23)
- Important Notice: 911 Service Charge Increases to Sixty-Five Cents (65¢) 04-10-18
- Important Notice: 911 Service Charge for Prepaid Wireless Telecommunications Service (5-1-13; revised 4-10-15)
- Frequently Asked Questions about Forms
To ensure you are able to view and fill out forms, please save forms to your computer and use the latest version of Adobe Acrobat Reader.
| 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 2023 - Current | 911 Service Charge Prepaid Wireless Telecommunications Return - Instructions |
| 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) |
To ensure you are able to view and fill out forms, please save forms to your computer and use the latest version of Adobe Acrobat Reader.
| Form | Period | Description |
|---|---|---|
| E-500L | July 2018 - June 2023 | 911 Service Charge Prepaid Wireless Telecommunications Return - Instructions |
| E-500L | July 2013 - June 2018 | 911 Service Charge Prepaid Wireless Telecommunications Return - Instructions |