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911 Emergency Surcharge & Prepaid Wireless Tax
Service providers must register with the Department of Revenue to collect and remit this fee.
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Prepaid Wireless 911 Emergency Surcharge
911 Emergency Surcharge
Other 911 Surcharge & Prepaid Wireless Tax Resources
Prepaid Wireless 911 Emergency Surcharge
All sellers of prepaid wireless services are responsible for collecting and remitting the Prepaid Wireless 911 Emergency Surcharge. The surcharge is 2% on the gross receipts from retail sales of all types of prepaid wireless services.
- Applies to sales of goods and services delivered to customers in South Dakota or sold to online customers with a South Dakota address.
- Includes prepaid wireless airtime cards and prepaid wireless minutes and plans.
- Surcharges itemized on the customer’s invoice are not subject to sales tax.
- If not itemized, the surcharge is subject to state and applicable municipal sales tax.
The surcharge applies to the entire price when prepaid wireless service is sold with other products for a single price. One of the following criteria must be met for the surcharge to apply only to the prepaid wireless service:
- The amount of the prepaid wireless service and surcharge is disclosed to the customer.
- The seller identifies the portion of the price that is for the prepaid wireless service in their records.
A provider can choose to not collect the 2% surcharge on a prepaid wireless device, such as a prepaid cell phone, that is bundled with prepaid wireless service of less than 10 minutes or $5.00.
911 Emergency Surcharge
All telecommunications service providers are responsible for collecting and remitting the 911 Emergency Surcharge. The surcharge is $1.25 per service user line per month.
- The surcharge does not apply to prepaid wireless services.
- The surcharge cannot be charged on more than 100 service lines per customer account billed per month.
- Surcharges itemized on the customer’s invoice are not subject to sales tax.
- If not itemized, the surcharge is subject to state and applicable sales tax.
Multi-Station Network Systems
The service user lines will be equal to the number of calls that can simultaneously be made from such system to the public switched telephone network.