Sales Tax Articles
Sales Tax State Activity Update - May 2008
West Virginia Sales Tax Welcomes Prepaid Calling Cards
West Virginia has changed the law with respect to sales of prepaid wireless calling service.
The purpose of the legislation was to provide an alternative means of equitably collecting and remitting telecommunications taxes, fees and charges applicable to prepaid wireless calling services.
The legislation removes prepaid wireless calling service from the $3.00 per month per subscriber wireless enhanced 911 fee imposed by W. Va. Code §24-6-6b and subjects the sale of prepaid wireless services to the 6% Consumers Sales and Service Tax imposed by W. Va. Code §11-15 et al.
Beginning 7/1/2008, retailers are required to collect the Consumer Sales and Use tax on prepaid wireless calling services, such as wireless airtime cards, prepaid cellular phone cards, prepaid cellular rechargeable minute cards and prepaid wireless ring tone download cards.
W. Va. Code §11-15-2(b)(13) defines the term "prepaid wireless calling service" as "a telecommunications service that provides the right to utilize mobile wireless service as well as other non telecommunications services, including the download of digital products delivered electronically, content and ancillary services, which must be paid for in advance that is sold in predetermined units or dollars of which the number decline with use in a known amount."
Note that the statutory change applies only to prepaid wireless calling services. It does not apply to:
- Prepaid land line (i.e., wired) phone cards;
- Prepaid land line rechargeable minute cards;
- Prepaid music download cards, unless they are sold as for use with or by delivery through mobile wireless service;
- Prepaid game download cards, unless they are sold as for use with or by delivery through mobile wireless service;
- Prepaid internet access cards, unless they are sold as for use with or by delivery through mobile wireless service and;
- Gift Cards, unless they are sold as for use with or by delivery through mobile wireless service.
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