DOR Taxation web site

Information about E911 Surcharge

Posted: January 6, 2011
Consumers to pay fee on prepaid wireless telecommunications

Effective January 1, 2011, all retail merchants in Colorado selling prepaid wireless telecommunication services (through the sale of a prepaid wireless phone or prepaid wireless phone card) must collect a fee of 1.4% per sales transaction.  Retailers will send the fee to the Colorado Department of Revenue at the time their sales tax is due.  This new law also requires retail merchants to notify customers of this new fee.

The fee, known as the Prepaid Wireless Telephone 911 Surcharge, will provide Colorado funding for enhanced 911 emergency services as established by the Colorado General Assembly. The requirements are a result of Senate Bill 2010-120 passed during the 2010 legislative session.

Please note that this fee should not be included in any sales tax calculations.  In addition, when the surcharge is filed and paid on time, retail merchants may keep a 2% service fee (also known as the vendor's fee) from the surcharge to cover collection efforts for this new law. Update: Effective July 1, 2011, the service fee for timely filed returns changes from 2% to 3.3%.

Retail merchants must remit all fees collected to the Colorado Department of Revenue on or before the date they are required to file their Colorado sales tax, following the date of the prepaid wireless transactions.  The 911 Surcharge form is available online for download. The first returns will be due Monday, February 21, 2011 (monthly sales tax filers).  For additional information, see publication FYI General 21.

Also available is a Print Ready Flier (PDF format) for Retailers to Post for Customers.