Prepaid Wireless Fee FAQ
How is prepaid wireless telecommunication service defined?
- Indiana statute 6.2.5-22.4 defines “Prepaid wireless calling service” as a service that:
- Provides the right to use mobile wireless service, as well as other non-telecommunication services including the download of digital products delivered electronically; and content and ancillary services.
- Must be paid for in advance.
- Is sold in predetermined units or dollars of which the number declines with use in a known amount.
Will the 911 fee for monthly billed wireless services continue to be charged?
- Yes. The rate for normal monthly billed wireless service will remain at 50 cents per month. It is subject to change by the Indiana Wireless 911 Enhancement Board.
When should the prepaid wireless fee be collected?
- The prepaid wireless fee should be collected at the time of every retail prepaid transaction. The fee should be reported to the Indiana Department of Revenue at the same time you report your sales tax collections each month. All fees must also be filed and remitted via the state’s INtax online filing program, found at www.intax.in.gov/ You will need to register for INtax before you can file and remit payment.
How do I file and remit this fee collection?
- You will report the fees collected to the Indiana Department of Revenue at the same time you file and remit your sales taxes. You must file and remit them, however, through INtax – the state’s online business filing program. If you are not already registered to use INtax, you will need to register at www.intax.in.gov/
If a retail transaction involves multiple items such as a prepaid card, phones and other services, should I collect one fee or multiple fees?
- The statute says “on each retail transaction,” which would mean multiple prepaid wireless 911 fees should be collected. In short, retailers should collect one prepaid wireless fee per product sales transaction.
Is the federal government exempt from Indiana’s new prepaid wireless fee?
- Yes. A consumer that is properly registered as the federal government, or an agency of the federal government, is exempt from Indiana’s prepaid wireless fee.
NOTE: A seller of prepaid wireless telecommunication service is not liable for damages to a person resulting from or incurred in connection with the following:
- Providing or failing to provide 911 or wireless 911 services.
- Identifying or failing to identify the telephone number, address, location, or name associated with a person or device that accesses or attempts to access 911 or wireless 911 service.
- Providing lawful assistance to an investigator or law enforcement officer of the United States, a state, or a political subdivision of a state in connection with lawful investigation or other law enforcement activity by the law enforcement officer.