Prepaid wireless 911 fees must be collected at the time of sale by the seller from the purchaser of the prepaid wireless service. A prepaid wireless service is a mobile wireless telecommunication service, which includes downloading digital products and content.
Prepaid wireless services must be paid in advance and are sold in predetermined units or dollars. As the predetermined units are used, the amount remaining available for use declines in a known amount. Examples include prepaid calling cards and minutes added to “pay-as-you-go” phones.
Prepaid wireless services are commonly sold by department stores, electronics stores, grocery stores, convenience stores, and other sellers. The prepaid wireless 911 fees are in lieu of the traditional 911 fee, which is collected on landline services and traditional wireless plans. (Telecommunication providers collect and remit the traditional 911 fees related to wireless and landline services.)
Sellers selling a bundled telecommunications service (phone and service) may choose not to charge the 911 fee when the portion applying to the prepaid wireless service is 10 minutes or less or has a value of $5 or less. If the minutes or dollars of the service are not disclosed separately, prepaid wireless telecommunication services bundled with other goods require the collection of the 911 fee on the entire selling price of the bundle.
The consumer is responsible to pay the fee, but the seller is liable to collect and remit all 911 fees paid by the consumer. The seller must itemize the 911 fee on the customer's receipt.
Businesses who sell prepaid wireless services need a sales tax account and an account to report the prepaid wireless 911 fee with the Office of State Tax Commissioner.
If you are a new business without a North Dakota sales tax permit, you must complete a sales tax application available on ND TAP. On the application, select that you are selling prepaid wireless services.
If your business has an active North Dakota sales tax permit, send an email to taxregistration@nd.gov to request a prepaid wireless account. In the email, include:
- Start date for selling prepaid wireless services,
- Sales tax permit number for the account, and
- Address of the permit.
If your business operates multiple locations in North Dakota, you can request a consolidated prepaid wireless account. With a consolidated account, one account will be used to report prepaid wireless tax for all your locations. Send an email to taxregistration@nd.gov that includes each location address that sells prepaid wireless services.
The prepaid wireless 911 fee rate is 2.5 percent.
Pay Online- Fast and Convenient!
Make a tax payment electronically to the Office of State Tax Commissioner by using ND TAP.
Mail- Check or money order
If you are unable to pay using ND TAP, you may pay by check or money order, made payable to North Dakota State Tax Commissioner. Complete and print the payment voucher on ND TAP and mail both to the Office of State Tax Commissioner at 600 E. Boulevard Ave. Dept. 127, Bismarck, ND 58505-0599.