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Effective, July 1, 2012, all retail merchants in Indiana who sell prepaid wireless telephone services (through the sale of a prepaid phone or prepaid phone card) now must collect $.50 per sales transaction. This is an increase from $.25 per sales transaction, which has been in effect since July 1, 2010.
The fee, known as the Prepaid 911 Enhancement Fee, will ensure Indiana complies with 911 requirements set down by the Indiana General Assembly. This is the result of an Indiana law (IC 36-8-16.6-14) passed during the 2010 legislative session.
Please note that this fee should not be included in any sales tax calculations. In addition, retail merchants may keep 1 percent of the transaction fee to cover collection efforts for this new law.
Retail merchants must remit all fees collected to the Indiana Department of Revenue on or before the date they are required to file their Indiana sales tax, following the date of the transaction. In addition, merchants must remit all fees electronically through the state’s INtax program. If you have not yet registered for INtax, visit www.intax.in.gov.