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Arizona’s Prepaid Wireless Tax, January 2014


 Arizona to impose an E911 telecommunications excise tax in January 2104.

The Arizona Department of Revenue has announced that beginning January 1, 2014, “prepaid wireless telecommunications retailers… will be liable for remitting the E911 excise tax on prepaid wireless telecommunications service.”

The E911 excise tax is the result of Laws 2012 Chapter 198 (HB 2094). The tax, which is “equal to 0.8% of the gross income derived from the retail sale of prepaid wireless telecommunications services” is actually a combination of three distinct taxes:

  • The Emergency Telecommunication Services tax;
  • The Prepaid Wireless Telecommunications Service tax; and
  • The Telecommunications Provider Proceeds tax.

Funds from the prepaid wireless telecommunications E911 excise tax will be placed in the Emergency Telecommunications Services Revolving Fund.

Retailers may retain 3% of the cost of the tax that they collect from their customers. An explanation of how to calculate that 3% is available on the Arizona Department of Revenue’s E911 Excise Tax page.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.