2020 California Code
Revenue and Taxation Code - RTC
DIVISION 2 - OTHER TAXES
PART 21.1 - Local Prepaid Mobile Telephony Services Collection Act
Section 42101.6.
(a) (1) The department shall post, for each local jurisdiction, the rate or rates of the local charges, as calculated pursuant to Sections 42102 and 42102.5, that each local jurisdiction has adopted, not later than December 1 of each year, on its internet website. The posted combined rate shall be the rate that applies to all retail transactions during the calendar year beginning April 1 following the posting.
(2) The department shall also separately post on its internet website the individual rates for each of the individual local charges reported pursuant to Section 42101.5.
(3) Notwithstanding paragraph (1), if a local agency notifies the department pursuant to subdivision (d) of Section 42101.5 that the posted rate is inaccurate or it no longer imposes a local charge or local charges or that the rate of its local charge or local charges has decreased, the department shall promptly post a recalculated rate that is applicable to the jurisdiction of that local agency. The change shall become operative on the first day of the calendar quarter commencing more than 60 days from the date the local agency notifies the department of the inaccuracy or that it no longer imposes a local charge or that the rate of its local charge has decreased. Nothing in this section modifies the notice obligations of Section 799 of the Public Utilities Code. However, beginning January 1, 2016, the notification and implementation requirements of paragraphs (5) and (6) of subdivision (a) of Section 799 of the Public Utilities Code shall not apply to prepaid mobile telephony services.
(4) A seller collecting the local charges pursuant to this part may rely upon the accuracy of the information posted on the department’s internet website in collecting and remitting all amounts of local charges.
(b) Except for amounts retained pursuant to subdivision (c), and except as provided in subdivision (d) for a seller that is a direct seller, all amounts of local charges collected by sellers shall be remitted to the department pursuant to Sections 42103, 42103.1, and 42103.2.
(c) A seller that is not a direct seller shall be permitted to deduct and retain an amount equal to 2 percent of the amounts that are collected by the seller from prepaid consumers for local charges.
(d) A direct seller shall remit the local charges to the local jurisdiction or local agency imposing the local charge. Remittance of the local charges shall be separately identified from any other local taxes or other charges that are remitted to the local jurisdiction or local agency imposing the local tax or other charge. The amounts remitted to the local jurisdiction or local agency imposing the local charge pursuant to this paragraph shall be deposited into the respective local jurisdiction or local agency account.
(e) A direct seller shall use the amounts posted by the department pursuant to subdivision (a) when determining what amounts to remit to each local jurisdiction or local agency.
(f) The amount of the local charges shall be separately stated on an invoice, receipt, or other similar document that is provided to the prepaid consumer of mobile telephony services by the seller, or otherwise disclosed electronically to the prepaid consumer, at the time of the retail transaction.
(g) The local charge that is required to be collected by a seller and any amount not returned to the prepaid consumer of mobile telephony services that is not owed as part of the local charge, but was collected from the prepaid consumer under the representation by the seller that it was owed as part of the local charge, constitute debts owed by the seller jointly to this state, for purposes of collection on behalf of, and payment to, the local jurisdiction and to the local jurisdiction imposing that local charge.
(h) A seller that has collected any amount of local charges in excess of the amount imposed by this part and actually due from a prepaid consumer may refund that amount to the prepaid consumer, even though the amount has already been paid over to the department and no corresponding credit or refund has yet been secured. Any seller making a refund of any charge to a prepaid consumer may repay therewith the amount of the charges paid.
(i) (1) Every prepaid consumer of mobile telephony services in this state is liable for any local charges until they have been paid to this state, except that payment to a seller registered under this part relieves the prepaid consumer from further liability for the local charges. Any local charge collected from a prepaid consumer that has not been remitted to the department shall be a debt owed jointly to the state, for purposes of collection on behalf of, and payment to, the local jurisdiction and to the local jurisdiction imposing the local charge by the person required to collect and remit the local charge. Nothing in this part shall impose any obligation upon a seller to take any legal action to enforce the collection of the local charge imposed by this section.
(2) A credit shall be allowed against, but shall not exceed, the local charges imposed on any prepaid consumer of mobile telephony services by this part to the extent that the prepaid consumer has paid local charges on the purchase to any other state, political subdivision thereof, or the District of Columbia. The credit shall be apportioned to the charges against which it is allowed in proportion to the amounts of those charges.
(j) (1) A seller is relieved from liability to collect the local charges imposed by this part that became due and payable, insofar as the base upon which the charges are imposed is represented by accounts that have been found to be worthless and charged off for income tax purposes by the seller or, if the seller is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. A seller that has previously paid the charges may, under rules and regulations prescribed by the department, take as a deduction on its return the amount found worthless and charged off by the seller. If any of those accounts are thereafter, in whole or in part, collected by the seller, the amount so collected shall be included in the first return filed after its collection and the charges shall be paid with the return.
(2) The department may, by regulation, adopt other rules with respect to uncollected or worthless accounts it deems necessary to the fair and efficient administration of this part.
(Added by Stats. 2020, Ch. 179, Sec. 4. (SB 1441) Effective January 1, 2021. Repealed as of January 1, 2026, pursuant to Section 42111.)
