Prepaid Wireless 911 Fee
The 2011 Legislative session enacted the Kanas 911 Act, which created the prepaid wireless 911 fee. This fee applies to prepaid wireless phones, prepaid wireless phone cards, and the recharging of these phones and cards.
On Jan. 1, 2012 Kansas retailers must begin collecting the prepaid wireless 911 fee. The fee is 1.06% of the retail cost for the phone or cards. The fee applies to the purchase of: 1) cellular phones preloaded with a set dollar amount for minutes or units of air time, or sold with rebates for air time; 2) calling cards for cellular phones preloaded with a set dollar amount for minutes or units or air time, 3) the recharging of a reusable cellular phone calling card, or 4) the recharging of a cellular phone itself with additional minutes or units of air time.
The fees must be submitted to the Kansas Department of Revenue electronically by either initiating an ACH Credit from your bank account or authorizing an ACH Debit using the Department's KSWebTax on-line business tax center. The prepaid wireless 911 fee will be paid at the same time the Kansas sales tax is filed and paid. Retailers that have not established a KSWebTax profile are encouraged to do so prior to January 1, 2012.
Money from the fee will help Kansas communities provide emergency 911 services via their dispatch centers. The funds will help cover costs such as purchasing new equipment, upgrading existing systems or licensing and training fees.
Frequently Asked Questions
Who must remit the fee?
Any retailer or telecommunications provider that sells the prepaid wireless phones, cards or rechargeable minutes to a consumer must remit the fee. This includes both in-state retailers and out-of-state retailers selling into the state of Kansas.
What is the prepaid wireless 911 fee charged on?
The fee is added to the purchase price of the following types of cellular phones and cards:
- cellular phones preloaded with a set dollar amount for minutes or units of air time, or sold with rebates for air time;
- calling cards for cellular phones preloaded with a set dollar amount for minutes or units of air time,
- the recharging of a reusable cellular phone calling card or
- the recharging of a cellular phone itself with additional minutes or units of air time.
- The 1.06% tax is computed on the total sale price of the phone or card.
Who must remit the fee?
Any retailer or telecommunications provider that sells the prepaid wireless phones, cards or rechargeable minutes to a consumer must remit the fee.
Is there still sales tax on the phones and cards or does this fee replace the sales tax?
The prepaid phones and cards are still subject to state and local sales tax. The prepaid wireless 911 fee is in addition to the sales tax.
Is the prepaid wireless 911 fee charged on the total receipts, including sales tax?
The fee will be charged on the total receipts for the phone or cards prior to the computation of sales tax. The fee is not charged on the amount of sales tax computed nor is sales tax charged on the amount of the prepaid wireless 911 fee.
Is the prepaid wireless 911 fee to be printed separately on the customer's receipts?
The statute states the fee be separately stated on an invoice, receipt, or other similar document that is provided, or otherwise disclosed, to the consumer.
When is the fee due?
The fee will be remitted at the same time you file and pay your Kansas sales tax.
How is the fee paid?
The fee must be paid electronically. You may elect to pay the fee through the Department's KSWebTax online business tax center. You may also initiate an ACH Credit from your bank. If you choose to pay via ACH Credit, you must complete an electronic Authorization for Electronic Funds Transfer (EF-101) form prior to filing the fee. This form is available from within the KSWebTax application.
How do I create a KSWebTax profile?
Go to https://www.kdor.org/TaxCenter/login.aspx to use KSWebTax. Click the 'Register Now' button to create your online profile. If you intend to pay your prepaid wireless 911 fee through KSWebTax, you will need your federal Employer Identification Number (EIN) and an access code. To obtain an access code or for assistance in setting up your account, contact Electronic Services at 800-525-3901.
My company has multiple locations with a sales tax account number for each location. Do I have to pay the fee on each tax account number or can I make one remittance for the entire company?
The prepaid wireless 911 fee can be paid at the company level. It is not required that you remit by each sales tax account number if you have more than one. You can file one remittance per filing period for the entire company based on your federal Employer Identification Number (EIN). If you have multiple sales tax accounts for your company but are filing one remittance for the entire company, we ask that you make the payment on the same tax account each filing period.
Please be aware that this remittance filing is subject to revision in 2013 or later years. The 911 Coordinating Council oversees the distribution of the fee and may require the filing to provide sales location in future years. Should a change occur in how the fee is filed, adequate notice will be provided to allow for updating your processing systems.
Where can I get additional information?
For questions on how to file the fee, contact Electronic Services at 800-525-3901. For general questions on the fee, contact Taxpayer Assistance Center at 785-368-8222.
Additional information for telecommunications providers on the overall changes to this new 911 law as contained in 2011 Substitute for Senate Bill 50 can be accessed at www.Kansas911.org.