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What are the Prepaid Wireless E911 Surcharge and Illinois Telecommunications Access Corporation (ITAC) Assessment?

The Prepaid Wireless E911 Surcharge is a charge imposed on the consumer, to be collected by sellers, when a retail transaction takes place that includes prepaid wireless telecommunications service. Currently, consumers on subscription plans, including mobile and land line phones, pay a similar surcharge for 9-1-1 service. The Prepaid Wireless E911 Surcharge was implemented to ensure that funding for emergency assistance (9-1-1 service) is obtained from consumers of prepaid wireless telecommunications service.

The ITAC Assessment is a competitively neutral charge (as established by the Illinois Commerce Commission) assessed on subscribers of wireless telecommunications service and Interconnected VoIP service, as well as consumers of prepaid wireless telecommunications service. The ITAC Assessment allows the Commission to administer its program to assist persons having a hearing or speech disability to communicate with persons with normal hearing. Rates for the Surcharge and Assessment on sales of prepaid wireless telecommunications service are available in the Tax Rate Database.

If you make sales of prepaid wireless telecommunications service, you are required to collect and remit the Surcharge and Assessment only on the portion of the receipts that is from the retail transaction of prepaid wireless telecommunications service. Retailers must disclose the Surcharge and Assessment by separately stating the figure on the receipt, invoice, or through other documentation. To report both the Surcharge and Assessment, complete Schedule B on Form ST-1 to calculate them, then transfer the total to Line 21 on the front of your ST-1 return.

Surcharge and Assessment figures collected from customers, and receipts from exempt sales, should not be included in the total receipts on Line 1 on Schedule B of Form ST-1. Purchasers who have an active tax exemption number issued by IDOR are exempt from paying the Surcharge and Assessment. Retailers' books and records must clearly identify the surcharge and assessment for retail transactions.

NOTE: The E911 Surcharge and ITAC Assessment do not change previously established sales tax obligations on prepaid services.

Visit the Prepaid Wireless E911 Surcharge page for more information.

You may access additional information by searching the entire Illinois Department of Revenue website.

If you have additional inquiries, you may submit them on the Questions, Comments, or Requests form.