Historically, efforts to establish statewide systems have met with resistance because of the urban/rural divide. Taxpayers in urban areas often don’t want to pay to fund emergency services in remote areas.
Those barriers are starting to come down thanks to cell phones. Just as urbanites expect to be able to access Google maps and Yelp when they travel the country, they expect to be able to reach 911 services wherever they are. And they may be a little more willing to pay for this kind of access than in the past.
A few states are already working to create statewide 911 services (e.g., Tennessee has a monthly statewide 911 surcharge). Ohio is looking to do the same with House Bill 445.
Ohio
HB 445 would require an updated 911 steering committee to advise the state on implementing, operating, and maintaining:
- A statewide emergency services internet protocol network (ESINET)
- A statewide Next Generation 9-1-1 core-services system (NG 9-1-1)
- The dispatch of emergency services providers
The new enhanced 911 system would be capable of providing both enhanced wireline 911 and enhanced wireless 911, which would include services for communicating voice, text, data, and video. The measure would also expand the definition of “communications device or service” to include:
- Multiline telephone systems (MTS)
- Nonvoice messaging devices
- Sensors and similar devices that generate data-only messages like photos or videos
- Wired or wireless telecommunications
- Voice over internet protocol service (VoIP)
System updates would be funded in part by a separate NG 9-1-1 access fee of .005% of the sale price of a prepaid wireless calling service for retail sales occurring in Ohio. Entities required to collect the wireless 911 charge or NG 9-1-1 access fee must keep “complete and accurate records relating to sales with respect to the charges and fees” for four years, and allow the Tax Commissioner to inspect these records upon request.
The seller of the prepaid calling service would need to collect the NG 9-1-1 access fee from the customer and disclose the amount of the fee at the time of the retail sale. As currently written,
HB 445 stipulates:
- The NG 9-1-1 access fee applies to the entire nonitemized price when a prepaid calling service is sold alongside other products or services for a single, nonitemized price
- The NG 9-1-1 access fee is generally exempt from state and local taxation
- Receipts from NG 9-1-1 access fees imposed under the 9-1-1 provisions are not included as “gross receipts” under the commercial activity tax law
There’s of course no guarantee Ohio HB 445 will become law, but whatever the fate of the bill, it serves as a good bellwether. There are a lot of problems with the way 911 services are funded in many states, and transitioning to modern, state-administered, state-funded systems could bring significant improvements.
The Wireless Communications and Public Safety Act of 1999 (911 Act) was created to improve public safety by “encouraging and facilitating the prompt deployment of a nationwide, seamless communications infrastructure for emergency services.” Transitioning from outdated local systems to modern statewide systems would bring the nation closer to making that a reality.
Avalara for Communications can help you streamline collection and remittance of 911 taxes and fees.
Cover photo by Canva