Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018
 

Prepaid Mobile Telephony Services Surcharge Collection Act

CHAPTER 2. THE PREPAID MOBILE TELEPHONY SERVICES SURCHARGE.

Section 42014

42014. Retail transaction occurring in state; Location of retail transaction; Good faith and due diligence of seller. (a) For purposes of this part, a retail transaction occurs in the state under any of the following circumstances:

(1) The prepaid consumer makes the retail transaction in person at a business location in the state (point-of-sale transaction).

(2) If paragraph (1) is not applicable, the prepaid consumerís address is in the state (known-address transaction). A known-address transaction occurs in the state under any of the following circumstances:

(A) The retail sale involves shipping of an item to be delivered to, or picked up by, the prepaid consumer at a location in the state.

(B) If the prepaid consumerís address is known by the seller to be in the state, including if the sellerís records maintained in the ordinary course of business indicate that the prepaid consumerís address is in the state and the records are not made or kept in bad faith.

(C) The prepaid consumer provides an address during consummation of the retail transaction that is in the state, including an address provided with respect to the payment instrument if no other address is available and the address is not given in bad faith.

(3) If an address is not available to the seller to determine whether any of the circumstances in paragraph (2) exist, the transaction will be deemed to be a known-address transaction occurring in this state if the mobile telephone number is associated with a location in this state.

(b) (1) A retail transaction shall occur at only one location for purposes of determining local charges. If the retail transaction is a point-of-sale transaction, the consumption of, use of, or access to, the prepaid mobile telephony service shall be presumed to be at that location.

(2) If the retail transaction is a known-address transaction, the location shall be as determined in descending order beginning with subparagraph (A) of paragraph (2) of subdivision (a); if subparagraph (A) of that paragraph is inapplicable, then pursuant to subparagraph (B) of that paragraph; if both subparagraphs (A) and (B) of that paragraph are inapplicable, then subparagraph (C) of that paragraph; and if subparagraphs (A), (B), and (C) of that paragraph are inapplicable, then paragraph (3) of subdivision (a). In a known-address transaction, the consumption of, use of, or access to, the prepaid mobile telephony service shall be presumed to be at the known address.

(c) (1) A seller that relies in good faith on information provided by the board to match the location of a point-of-sale transaction to the applicable prepaid MTS surcharge amount and local charges, that collects that amount from the prepaid consumer, and that remits the amount to the board in compliance with this part, shall not be liable for any additional MTS surcharge or local charges and shall not be required to refund any amounts collected and paid to the board to the prepaid consumer.

(2) For a known-address transaction, the seller may collect the prepaid MTS surcharge and local charges that correspond to the five-digit postal ZIP Code of the prepaid consumerís address. A seller that, with due diligence and in good faith, relies on credible information to match the five-digit postal ZIP Code of the prepaid consumerís address to the applicable prepaid MTS surcharge and local charges amount, that collects that amount from the prepaid consumer, and that remits the amount to the board in compliance with this part, shall not be liable for any additional MTS surcharge or local charges and shall not be required to refund any amounts collected and paid to the board to the prepaid consumer, even if the five-digit postal ZIP Code of the prepaid consumerís address that the seller uses corresponds to more than one local charge.

History.—Added by Stats. 2014, Ch. 885 (AB 1717), in effect September 30, 2014. Stats. 2016, Ch. 89 (SB 1481), in effect January 1, 2017, substituted "known-address" for "known address" in paragraph (2) of subdivision (a), redesignated subparagraph (D) of paragraph (2) as paragraph (3) in subdivision (a), deleted "The" and added "If an address is not available to the seller to determine . . . known-address transaction occurring in this state if the" to the new paragraph (3) in subdivision (a); substituted "paragraph (3) of subdivision (a)" for "subparagraph (D) of that paragraph" after "paragraph are inapplicable, then" and substituted "known-address" for "known address" after "In a" in paragraph (2) of subdivision (b).