O F F I C E O F L E G I S L A T I V E R E S E A R C H
P U B L I C A C T S U M M A R Y
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PA 21-70—HB 6629
Finance, Revenue and Bonding Committee
AN ACT CONCERNING TH E COLLECTION AND REM ITTANCE OF
THE E 9-1-1 FEE BY MARKETPLACE FACILITATORS
SUMMARY: This act 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. The law imposes this fee on each sale of
prepaid wireless telecommunications services (see BACKGROUND) by a seller
conducting a retail transaction in Connecticut. Retailers must disclose the fee
amount 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 act, 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 those sellers;
2. collects receipts from customers and remits payments to marketplace
sellers, directly or indirectly, through agreements or arrangements with
third parties; and
3. receives compensation or other consideration for these services.
EFFECTIVE DATE: July 1, 2022, and applicable to sales occurring on or after
that date, except that a technical change is effective October 1, 2021.
BACKGROUND
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.”