                                 CODE OF VIRGINIA

COLLECTION OF PREPAID WIRELESS E-911 CHARGE AT POINT OF SALE; RATE ESTABLISHED
(§ 56-484.17:1)

A. As used in this section, unless the context requires a different meaning:
			&#8220;Dealer&#8221; means a person who sells prepaid CMRS to an end user.
			&#8220;Department&#8221; means the Department of Taxation.
			&#8220;End user&#8221; means a person who purchases prepaid CMRS in a retail
transaction.
			&#8220;Prepaid CMRS&#8221; means CMRS that allows a caller to dial 911 to
access the 911 system, which CMRS service is required to be paid for in advance
and is sold in predetermined units or dollars of which the number declines with
use in a known amount.
			&#8220;Prepaid wireless E-911 charge&#8221; means the charge that is required
to be collected by a dealer from an end user in the amount established under
subsection B.
			&#8220;Retail transaction&#8221; means the purchase of prepaid CMRS from a
dealer for any purpose other than resale. If more than one item or article of
prepaid CMRS is purchased by an end user, then each item or article purchased
shall be deemed to be a separate retail transaction.

B. The prepaid wireless E-911 charge:

   1. Shall be $0.55 per retail transaction.

   2. Shall be collected by the dealer from the end user with respect to each
   retail transaction occurring in the Commonwealth. The amount of the prepaid
   wireless E-911 charge shall be either separately stated on an invoice,
   receipt, or other similar document that is provided to the end user by the
   dealer or otherwise disclosed by the dealer to the end user. For purposes of
   this subdivision, a retail transaction that is effected in person by an end
   user at a business location of the dealer shall be treated as occurring in the
   Commonwealth if that business location is in the Commonwealth, and any other
   retail transaction shall be treated as occurring in the Commonwealth if
   treated as occurring in the Commonwealth for purposes of the Virginia Retail
   Sales and Use Tax Act (&#xA7; 58.1-600 et seq.).

   3. Is the liability of the end user and not of the dealer or of any CMRS
   provider, except that the dealer shall be liable to remit to the Department
   all prepaid wireless E-911 charges that the dealer collects from end users as
   provided in subsection E, including all prepaid wireless E-911 charges that
   the dealer is deemed to have collected in cases in which the charge has not
   been separately stated on an invoice, receipt, or other similar document
   provided to the end user by the dealer.

C. The amount of the prepaid wireless E-911 charge that is collected by a dealer
from an end user shall not be included in the base for measuring any fee, tax,
surcharge, or other charge that is imposed by the Commonwealth, any political
subdivision of the Commonwealth, or any intergovernmental agency.

D. Except as otherwise expressly provided herein, the charge imposed pursuant to
this section shall be collected by the Tax Commissioner and shall be
implemented, enforced, and collected in the same manner as retail sales and use
taxes are implemented, enforced, and collected under the Virginia Retail Sales
and Use Tax Act (&#xA7; 58.1-600 et seq.). However, as provided in subdivision B
3, the prepaid wireless E-911 charge shall be the liability of the end user and
not of the dealer or of any CMRS provider, except that the dealer shall be
liable to remit to the Department all prepaid wireless E-911 charges that the
dealer collects from end users. A dealer shall be permitted to deduct and retain
five percent of prepaid wireless E-911 charges that are collected by the dealer
from end users if such charges were not delinquent at the time of remittance to
the Department. Nothing herein shall be construed or interpreted as limiting or
restricting the discount provided under &#xA7; 58.1-622 with regard to prepaid
CMRS that is taxable under the Virginia Retail Sales and Use Tax Act.
			The Department, after subtracting its direct costs of administration, shall
deposit all remitted prepaid wireless E-911 charges into the state treasury. The
Comptroller shall as soon as practicable deposit such moneys into the Wireless
E-911 Fund for use by the Board in accordance with the purposes permitted by
this article.

E. The Department shall develop and publish guidelines implementing the
provisions of this section and shall update the guidelines as deemed necessary
by the Tax Commissioner. The Tax Commissioner shall notify every dealer holding
a certificate of registration under &#xA7; 58.1-613 when the guidelines and any
updates are published. The development and publication of the guidelines shall
be exempt from the provisions of the Administrative Process Act (&#xA7; 2.2-4000
et seq.).
			Among other items, the guidelines shall include provisions exempting small
dealers, as defined solely by the Department, from the otherwise mandatory
requirement under this section to disclose the prepaid wireless E-911 charge to
the end user. The guidelines shall define a &#8220;small dealer&#8221; based, in
part or in whole, upon the extent to which the dealer sells prepaid CMRS.

F. The provisions of this section shall apply to retail transactions occurring
on or after January 1, 2011.

HISTORY: 2010, cc. 466, 566; 2021, Sp. Sess. I, c. 248.