56-484.17:1 - (Effective January 1, 2011) Collection of prepaid wireless E-911 charge at point of sale; rate esta...
§ 56-484.17:1. (Effective January 1, 2011) Collection of prepaid wirelessE-911 charge at point of sale; rate established.
A. As used in this section, unless the context requires a different meaning:
"Dealer" means a person who sells prepaid CMRS to an end user.
"Department" means the Department of Taxation.
"End user" means a person who purchases prepaid CMRS in a retailtransaction.
"Prepaid CMRS" means CMRS that allows a caller to dial 911 to access the911 system, which CMRS service is required to be paid for in advance and issold in predetermined units or dollars of which the number declines with usein a known amount.
"Prepaid wireless E-911 charge" means the charge that is required to becollected by a dealer from an end user in the amount established undersubsection B.
"Retail transaction" means the purchase of prepaid CMRS from a dealer forany purpose other than resale. If more than one item or article of prepaidCMRS is purchased by an end user, then each item or article purchased shallbe deemed to be a separate retail transaction.
B. The prepaid wireless E-911 charge:
1. Shall be $0.50 per retail transaction.
2. Shall be collected by the dealer from the end user with respect to eachretail transaction occurring in the Commonwealth. The amount of the prepaidwireless E-911 charge shall be either separately stated on an invoice,receipt, or other similar document that is provided to the end user by thedealer or otherwise disclosed by the dealer to the end user. For purposes ofthis subdivision, a retail transaction that is effected in person by an enduser at a business location of the dealer shall be treated as occurring inthe Commonwealth if that business location is in the Commonwealth, and anyother retail transaction shall be treated as occurring in the Commonwealth iftreated as occurring in the Commonwealth for purposes of the Virginia RetailSales and Use Tax Act (§ 58.1-600 et seq.).
3. Is the liability of the end user and not of the dealer or of any CMRSprovider, except that the dealer shall be liable to remit to the Departmentall prepaid wireless E-911 charges that the dealer collects from end users asprovided in subsection E, including all prepaid wireless E-911 charges thatthe dealer is deemed to have collected in cases in which the charge has notbeen separately stated on an invoice, receipt, or other similar documentprovided to the end user by the dealer.
C. The amount of the prepaid wireless E-911 charge that is collected by adealer from an end user shall not be included in the base for measuring anyfee, tax, surcharge, or other charge that is imposed by the Commonwealth, anypolitical subdivision of the Commonwealth, or any intergovernmental agency.
D. Except as otherwise expressly provided herein, the charge imposed pursuantto this section shall be collected by the Tax Commissioner and shall beimplemented, enforced, and collected in the same manner as retail sales anduse taxes are implemented, enforced, and collected under the Virginia RetailSales and Use Tax Act (§ 58.1-600 et seq.). However, as provided insubdivision B 3, the prepaid wireless E-911 charge shall be the liability ofthe end user and not of the dealer or of any CMRS provider, except that thedealer shall be liable to remit to the Department all prepaid wireless E-911charges that the dealer collects from end users. A dealer shall be permittedto deduct and retain five percent of prepaid wireless E-911 charges that arecollected by the dealer from end users if such charges were not delinquent atthe time of remittance to the Department. Nothing herein shall be construedor interpreted as limiting or restricting the discount provided under §58.1-622 with regard to prepaid CMRS that is taxable under the VirginiaRetail Sales and Use Tax Act.
The Department, after subtracting its direct costs of administration, shalldeposit all remitted prepaid wireless E-911 charges into the state treasury.The Comptroller shall as soon as practicable deposit such moneys into theWireless E-911 Fund for use by the Board in accordance with the purposespermitted by this article.
E. The Department shall develop and publish guidelines implementing theprovisions of this section and shall update the guidelines as deemednecessary by the Tax Commissioner. The Tax Commissioner shall notify everydealer holding a certificate of registration under § 58.1-613 when theguidelines and any updates are published. The development and publication ofthe guidelines shall be exempt from the provisions of the AdministrativeProcess Act (§ 2.2-4000 et seq.).
Among other items, the guidelines shall include provisions exempting smalldealers, as defined solely by the Department, from the otherwise mandatoryrequirement under this section to disclose the prepaid wireless E-911 chargeto the end user. The guidelines shall define a "small dealer" based, inpart or in whole, upon the extent to which the dealer sells prepaid CMRS.
F. The provisions of this section shall apply to retail transactionsoccurring on or after January 1, 2011.
(2010, cc. 466, 566.)