Colorado Imposes Charges on Prepaid Wireless Telecommunications Services

Jan 6th, 2022

The Colorado Department of Revenue ("Department") recently released guidance discussing prepaid wireless charges on retail sales of prepaid wireless telecommunications services. These charges are: (1) a 911 charge; (2) a telecommunications relay service (TRS) charge; and (3) a 988 charge. Colorado began imposing the 988 charge on prepaid wireless telecommunications on January 1, 2022.

Colorado imposes the TRS charge at a rate of 0.1% of the price for a service, while it imposes the 911 charge and 988 charge at flat amounts established annually by the Public Utilities Commission and the 988 Crisis Hotline Enterprise. Anyone selling prepaid wireless telecommunications services is required to collect the amount of the charges from the consumer and file monthly returns with the Department. Anyone who uses federally supported services or programs to offer customers free prepaid wireless telecommunications services is also required to file returns and remit the 911 charge and the 988 charge, but not the TRS charge. Wholesale sales of prepaid wireless telecommunications services purchased by retailers for resale are not subject to the prepaid wireless charges.

https://www.ttrus.com/sites/default/files/newspdf/Colorado_Imposes_Charges_on_Prepaid_Wireless_Telecommunications_Services_1641514310.pdf