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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.  

See Laws & Regulations

 

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.

See Tax Fact

 

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.

See Tax Fact

 

Other 911 Surcharge & Prepaid Wireless Tax Resources

911 Emergency Surcharge Laws & Regulations

Laws and regulations pertaining to 911 prepaid and 911 emergency surcharge taxes.

911 Emergency Surcharge Administrative Fees

All sellers and providers are allowed to keep an administrative fee each month as an allowance for the cost of collecting and remitting the 911 Emergency Surcharge. The fee is calculated at 2% of the total surcharge collected or $25, whichever is greater.