Retailers must collect a 911 surcharge fee of $1.16 from consumers on each retail transaction occurring in this state for the purchase of prepaid wireless calling services and on all monthly wireline and non-prepaid wireless communications services. The money collected from the fee goes to the advancement of technology used to provide emergency communication services (911 services).
Prepaid wireless calling services includes prepaid wireless phone cards, recharge or refill authorization codes, and prepaid cell phones or other prepaid wireless devices preloaded with airtime minutes. Once collected, the 911 surcharge on prepaid wireless calling services is reported and paid on the sales and use tax return or the TV programming and telecommunications sales and use tax return.
Beginning July 1, 2017, dealers of wireline and non-prepaid wireless telecommunications services will begin reporting and remitting the 911 surcharges they collect on the TV programming and telecommunications sales and use tax return, instead of reporting and remitting the fees to the Tennessee Emergency Communications Board.
Retailers may keep three percent of the 911 surcharges that they collect as an administrative fee.