DATE: September 22, 2015
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
Authorization of an Agreement with the State Board of Equalization for Implementation of the Local Prepaid Mobile Telephony Services Collection Act and Authorization of Examination of Prepaid Mobile Telephony Services Surcharge and Local Charge Records
RECOMMENDATION
That Council approves the attached resolution authorizing the City Manager, and delegates, examination of the records maintained by the State Board of Equalization related to the Boards collection of Surcharge and Local Charge Records on the City's behalf.
BACKGROUND
In September 2014, the State enacted Assembly Bill 1717 (Perea) Telecommunications: prepaid mobile telephony services, state surcharge and fees, local charges collection. This bill enacted the Prepaid Mobile Telephony Service (MTS) Surcharge Collection Act. The bill established a prepaid MTS surcharge, as defined, based upon a percentage of the sales price of each retail transaction that occurs in this state for prepaid mobile telephony services, as defined. The prepaid MTS surcharge would include the emergency telephone users surcharge and PUC surcharges. The bill requires sellers to collect the prepaid MTS surcharge, as provided, from a prepaid consumer and remit the amounts collected to the State Board of Equalization pursuant to the Fee Collection Procedures Law, unless the seller is a direct seller. The bill would require the Board, after deducting its administrative expenses, to deposit the amounts collected for the emergency telephone users surcharge into the Prepaid MTS 911 Account and to deposit the amounts collected for PUC surcharges into the Prepaid MTS PUC Account in the Prepaid Mobile Telephony Services Surcharge Fund, which the bill would establish in the State Treasury. These charges will be subject to local Utility Users Taxes, including the City of Hayward's UUT.
DISCUSSION
The prepa...
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