The Prepaid Wireless E911 Surcharge is a charge imposed on the consumer, to be collected by sellers, when a retail transaction takes place which includes prepaid wireless telecommunications service. This surcharge has been implemented to ensure that funding for the emergency assistance (9-1-1 service) is maintained with equal contribution from consumers of prepaid wireless telecommunications service. Note: The Prepaid Wireless E911 Surcharge must be collected on the same transactions as the ITAC Assessment (i.e., sales of prepaid wireless telecommunications service). This surcharge does not change previously established sales tax obligations on prepaid services.
Prepaid wireless telecommunications service is service that must be paid for in advance and is sold in predetermined units or dollars. As the predetermined units are used the amount remaining available for use declines in a known amount. Examples include prepaid calling cards and minutes added to “pay-as-you-go” phones.
“Consumer” means a person who purchases prepaid wireless telecommunications service in a retail transaction.
“Retail transaction” means the purchases of prepaid wireless telecommunications service from a seller for any purpose other than resale.
“Seller” means a person who sells prepaid wireless telecommunications service to another person.
The rate of the Prepaid Wireless E911 Surcharge varies depending on whether the transaction occurs at a Chicago or a non-Chicago location. Use the Tax Rate Database to determine the rate.
All exemptions that apply for other Sales and Use Taxes are effective for the Prepaid Wireless E911 Surcharge. Some of the most common examples of transactions that are exempt from tax are below. (See the Illinois Administrative Code, Section 130.120 and Publication 104, Common Sales Tax Exemptions for a comprehensive list.)
The Prepaid Wireless E911 Surcharge is reported in combination with the ITAC Assessment on Schedule B, to be filed and paid as part of Form ST-1, Sales and Use Tax and E911 Surcharge Return.