69-2-405. Service charges -- Collection and distribution of revenue.
(1) As used in this section:
(a) "Consumer" means a person who purchases prepaid wireless telecommunications service in a transaction.
(b) "Prepaid wireless 911 service charge" means the charge that is required to be collected by a seller from a consumer in the amount established under Subsection (2).
(c)
(i) "Prepaid wireless telecommunications service" means a wireless telecommunications service that:
(A) is paid for in advance;
(B) is sold in predetermined units of time or dollars that decline with use in a known amount or provides unlimited use of the service for a fixed amount or time; and
(C) allows a caller to access 911 emergency service.
(ii) "Prepaid wireless telecommunications service" does not include a wireless telecommunications service that is billed:
(A) to a customer on a recurring basis; and
(B) in a manner that includes the charges levied under Sections 69-2-402, 69-2-403, and 69-2-404, for each radio communication access line assigned to the customer.
(d) "Seller" means a person that sells prepaid wireless telecommunications service to a consumer.
(e) "Transaction" means each purchase of prepaid wireless telecommunications service from a seller.
(f) "Wireless telecommunications service" means commercial mobile radio service as defined by 47 C.F.R. Sec. 20.3, as amended.
(2) There is imposed:
(a)
(i) before January 1, 2025, a prepaid wireless 911 service charge of 3.7% of the sales price per transaction; and
(ii) on and after January 1, 2025, a prepaid wireless 911 service charge of 3.13% of the sales price per transaction; and
(b) a prepaid wireless telecommunications service charge of 1.2% of the sales price per transaction.
(3)
(a) Each charge described in Subsection (2) shall be collected by the seller from the consumer for each transaction occurring in this state.
(b)
(i) Except as provided in Subsections (3)(b)(ii) and (iii), if a user of a service subject to a charge described in Subsection (2) is not the consumer, the seller shall collect the charge from the consumer for the service.
(ii) A charge described in Subsection (2) is not imposed on a seller or a consumer of federal wireless lifeline service if the consumer does not pay the seller for the service.
(iii) A consumer of federal wireless lifeline service shall pay, and the seller of the service shall collect and remit, each charge described in Subsection (2) when the consumer purchases from the seller optional services in addition to the federally funded lifeline benefit.
(4) Each charge described in Subsection (2) shall be separately stated on an invoice, receipt, or similar document that is provided by the seller to the consumer.
(5) For purposes of Subsection (3), the location of a transaction is determined in accordance with Sections 59-12-211 through 59-12-215.
(6) When prepaid wireless telecommunications service is sold with one or more other products or services for a single non-itemized price, then the percentage specified in Subsection (2) shall apply to the entire non-itemized price.
(7) A seller may retain 3% of the charges described in Subsection (2) that are collected by the seller from consumers as reimbursement for the cost of billing, collecting, and remitting the charge.
(8) A person that collects a charge described in Subsection (2), except as retained under Subsection (7), shall remit each charge to the commission at the same time that the seller remits to the commission money collected by the person under Title 59, Chapter 12, Sales and Use Tax Act.
(9) The commission shall distribute revenues collected under this section as follows:
(a) Before January 1, 2025:
(i) 47.97% of the prepaid wireless 911 service charge revenue to a public safety answering point in accordance with Section 69-2-302;
(ii) 16.89% of the prepaid wireless 911 service charge revenue to the Unified Statewide 911 Emergency Service Account created in Section 63H-7a-304;
(iii) 35.14% of the prepaid wireless 911 service charge revenue to the Utah Statewide Radio System Restricted Account created in Section 63H-7a-403; and
(iv) 100% of the prepaid wireless telecommunications service charge revenue to the Universal Public Telecommunications Service Support Fund created in Section 54-8b-15;
(b) after January 1, 2025, and before July 1, 2033:
(i) 58.4% of the prepaid wireless 911 service charge revenue to a public safety answering point in accordance with Section 69-2-302;
(ii) 20% of the prepaid wireless 911 service charge revenue to the Unified Statewide 911 Emergency Service Account created in Section 63H-7a-304;
(iii) 21.6% of the prepaid wireless 911 service charge revenue to the Utah Statewide Radio System Restricted Account created in Section 63H-7a-403; and
(iv) 100% of the prepaid wireless telecommunications service charge revenue to the Universal Public Telecommunications Service Support Fund created in Section 54-8b-15; and
(c) after July 1, 2033, when Subsection 63H-7a-403(2)(b) sunsets in accordance with Section 63I-2-263:
(i) 74.49 % of the prepaid wireless 911 service charge revenue to a public safety answering point in accordance with Section 69-2-302;
(ii) 25.51 % of the prepaid wireless 911 service charge revenue to the Unified Statewide 911 Emergency Service Account created in Section 63H-7a-304; and
(iii) 100% of the prepaid wireless telecommunications service charge revenue to the Universal Public Telecommunications Service Support Fund created in Section 54-8-15.
Amended by Chapter 435, 2022 General Session
