Retailers of prepaid wireless telecommunication services are required to collect a 911 surcharge from their customers on prepaid wireless sales of $10 or more that are also subject to sales tax. The 911 surcharge on prepaid wireless sales must be reported and remitted to the Department of Revenue on the sales and use tax return or the TV programming and telecommunications sales and use tax return.
Retailers of wireline and non-prepaid wireless telecommunication services also report and remit the monthly 911 surcharge collected from their customers to the Department of Revenue. It is reported and remitted in conjunction with the sales and use tax on Schedule D of the TV programming and telecommunications sales and use tax return.
Beginning January 1, 2021, the 911 surcharge is $1.50 per retail sale. For more information on the surcharge increase, please see Important Notice 20-18.
History of the 911 Surcharge
Prior to July 1, 2017, the Department only received the 911 surcharge on prepaid wireless calling services. The surcharge on monthly communications services was reported and paid to the Tennessee Emergency Communications Board. Any 911 surcharge collected for periods prior to July 1, 2017, on wireline and non-prepaid wireless telecommunications services must be submitted to the Tennessee Emergency Communications Board.
For more information about the 911 surcharge, see Important Notice 15-02 and Important Notice 17-05.