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OLR Bill Analysis
HB 6629
AN ACT CONCERNING THE COLLECTION AND REMITTANCE OF
THE E 9-1-1 FEE BY MARKETPLACE FACILITATORS.
SUMMARY
This bill makes marketplace facilitators retailers for purposes of
collecting and remitting the prepaid wireless E-911 fee, which supports
the state’s enhanced emergency 911 program.
By law, this fee is imposed on each sale of prepaid wireless
telecommunications services (see BACKGROUND) by a seller
conducting a retail transaction in Connecticut. Retailers must disclose
the amount of the fee to consumers in an invoice, a receipt, or other
similar document, or post it conspicuously on their websites or on a
conspicuous sign at the point of sale. They may keep 1% of the amount
collected and must remit the balance to the state. Under the bill,
marketplace facilitators that facilitate the sale of prepaid wireless
telecommunications services to consumers are considered retailers for
these purposes and are thus subject to these requirements. Existing law
already requires marketplace facilitators to collect and remit sales tax
on behalf of their marketplace sellers.
By law, a “marketplace facilitator” is any person who:
1. facilitates retail sales of at least $250,000 by marketplace sellers
during the prior 12-month period by providing a forum (e.g.,
website, catalog, or booth) that lists or advertises taxable
tangible personal property or services, including digital goods,
for sale by such sellers;
2. collects receipts from customers and remits payments to
marketplace sellers, directly or indirectly, through agreements
or arrangements with third parties; and 2021HB-06629-R000651-BA.DOCX
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3. receives compensation or other consideration for these services.
EFFECTIVE DATE: July 1, 2022, and applicable to sales occurring
on or after July 1, 2022, except that a technical change is effective
October 1, 2021.
BACKGROUND
E-911 Fee
The Connecticut Public Utilities Regulatory Authority assesses this
fee on telecommunications service subscribers each June, which also
applies to prepaid wireless telecommunications services. The fee is
currently $0.68.
Prepaid Wireless Telecommunications Service
A prepaid wireless telecommunications service is a wireless
telephone service that a consumer pays in advance that (1) allows
access to the E-911 system by dialing 911 and (2) is sold in
predetermined units or dollars that decline with use (sometimes called
“no contract plans”). It includes prepaid wireless phone cards,
recharge or refill authorization codes, and prepaid cell phones or other
prepaid wireless devices preloaded with airtime minutes. It excludes
“calling cards.”
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable
Yea 48 Nay 0 (04/22/2021)