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Local Jurisdictions MUST Contract with 130E for <br />Collection of Local Charges on Prepaid Mobile <br />Telephony Services <br />Beginning January 1, 2016, a new law AB 717 requires local jurisdictions to contract with the <br />California State Board of Equalization (BOE) in order to receive revenue from local utility user <br />taxes (UUT), local 911 charges, and any other local charges imposed on consumers of prepaid <br />mobile services. <br />To ensure the uninterrupted collection of these local revenues, local jurisdictions must contract <br />with the BOE by September 1, 2015. If a local jurisdiction does not contract with the BOE, any <br />local charges imposed upon prepaid mobile telephony services (MTS) will not be collected by the <br />sellers and the local jurisdiction will not receive local charge revenue from prepaid MTS once the <br />new law is effective on January 1, 2016. <br />If the local jurisdiction does not contract with BOE by September 1, 2015, the next deadline is <br />December 1, 2015, for collection beginning April 1, 2016. In order to contract with the BOE, local <br />jurisdictions must have an ordinance that applies its local charge to prepaid MTS. <br />Current law imposes a variety of surcharges on phone services, including prepaid mobile phone <br />services. Currently, phone carriers are generally responsible for collecting and paying these <br />surcharges (for example, the 911 emergency surcharge and California Public Utilities <br />Commission surcharges) to the state. The new law replaces all current charges imposed upon <br />prepaid mobile phone services with a new prepaid MTS surcharge. The prepaid MTS surcharge <br />will be paid by purchasers of prepaid wireless services in California and be collected at the time <br />of purchase. <br />Under the new law, the MTS surcharge will be the only method for local jurisdictions to collect <br />taxes and surcharges imposed upon prepaid mobile telephone services sold in their jurisdiction. <br />For more information about contracting with BOE for the collection of UUT and /or local 911 <br />charges, please contact the BOE's Local Revenue Allocation Unit at 1- 916- 324 -3000 or by email <br />at readiudaaboe ca.goy. <br />For general information about the new Prepaid MTS surcharge, please see our Prepaid Mobile <br />Telephony Services Surcharge guide, or visit our website at www.boe.ca.gov. <br />55B -17 <br />