To determine local charges properly for your online sales, you should charge the rate in effect based on the above known California location or address of your customer in the order listed. Benefits of a prepaid cell phone. These include access lines to: (See Revenue and Taxation Code (RTC) section. If your prepaid card expires while you still have money on it, you may be able to request a replacement card to access the funds. A. Your customer's billing address is in Sacramento, California. This exception was modified effective January 1, 2005, to clarify that a redemption date was not another name for an expiration date. Those cards can continue to charge monthly fees and can expire, as long as those limitations are clearly disclosed on the card. The U.S. Bank Visa Gift Card cannot be reloaded with additional funds, nor can it be used at an ATM. Our goal is to provide a good web experience for all visitors. No cash or ATM access. The key takeaway was that the federal CARD Act applies to gift cards and other certificates that are linked closely to a specified cash dollar amount. Verizon - Best Prepaid Plans With Loyalty Discounts. For example, on money orders more than a year old, WesternUnion charges a $2-per-month service fee for each month after the first 12 up to a maximum of $144. 23California Civil Code Section 1749.5(f). Potential risks lies in the Credit Card Accountability Responsibility and Disclosure Act, i.e., the CARD Act. In addition to the 911 and 988 surcharges, you charge and collect the local charges at the rate in effect where your business is located (City of San Jose), because that's where the sale occurred. If the gift card was sold at a discount, the card may state an expiration date, but it must be at least 30 days after it was sold. But what about the sale of a $100 card good for 5 workouts to the gym? Postal money orders are an exception they never expire and never lose . If you cancel a monthly subscription, it immediately moves to the Disabled stage on the date you cancel it. Each retail purchase of prepaid mobile telephony services in California. The price of the cell phone component of the bundled charge is not disclosed to the prepaid MTS consumer. The total selling price of the SIM card with prepaid airtime is subject to local charges because the price of the airtime is not minimal and cannot be identified since you didnt keep books and records indicating the standalone price of the airtime. Your customer provides you his Arizona address and a mobile number that is associated with a California location. Sales of prepaid data service plans (minutes) that can be used for data, text, or as cell phone airtime minutes are subject to the 911 surcharge, 988 surcharge, and local charges apply (if applicable). If the recipient can only redeem the gift certificate or gift card for merchandise, or for a particular kind or class of merchandise, does this affect your decision to purchase or give the certificate or card? Public File for KMAX-TV / Good Day Sacramento. As the benefits of the expenses are recognized, the related asset account is decreased and expensed. Each retail purchase of prepaid mobile telephony services in California. If you opt to make monthly installments, expect to pay $125-$300 per month depending on the total cost, age, and installment period. We brought the issue to consumer attorney Ian Barlow. 9One argument has been made that sellers in a single mall are actually "affiliated" under the law because they have each agreed to honor the cards. Account Sign InIniciar sesin. Generally, that it is "issued : Includes gift cards. If you are planning to travel abroad soon or stay in touch with loved ones who live abroad, there are plenty of great international service options with AT&T PREPAID. Order reward cards On Demand and in bulk for your business. The combined surcharge must be labeled as the 911/988 Surcharge on the bill. Sales tax applies to the $99.99 selling price of the cell phone. The invoice, receipt, or other similar document must show the amount of the 911 surcharge ($0.30), the amount of the 988 surcharge ($0.08), the amount of local charges ($13.99), and the amount of sales tax ($12.60) at the time of the retail sale of prepaid MTS. NOTICE: We attempt to make our Legal Guides accurate as of the date of publication, but they are only guidelines and not definitive statements of the law. Check your cardholder agreement to see if there are actions you need to take to prevent this loss. You sell SIM cards that are loaded with prepaid wireless minutes for international use. More resources for both sellers and service suppliers: We strive to provide a website that is easy to use and understand. If the service supplier has already paid the 911 and 988 surcharge to the state, you may file a Claim For Refund or Credit with CDTFA. Not if it does not contain an expiration date. Does an unredeemed gift certificate escheat to the state? Terms and conditions and fees apply. The following examples show how to compute local charges and/or sales tax on SIM cards sold with prepaid airtime. You can top up your account at any time online or at any of Petro-Canada's 1,800+ stations found across the country. The Civil Code also is available on the Internet at http://leginfo.legislature.ca.gov/ under the "California Law" button. Some restrictions apply. Password. A gift certificate or gift card without an expiration date is valid until it is redeemed or replaced.20, Notwithstanding any policy of the seller, effective January 1, 2008, a gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash (not a new certificate or merchandise) for its cash value.21 Cash for purposes of this section includes currency or check.22 Where a seller accepts funds toward a gift certificate from one or more contributors as a gift for another person (the "recipient"), the seller must give each contributor a full refund of the amount paid toward the certificate if the time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to contributors and recipient and the recipient does not redeem the funds by the time disclosed.23. SIM and assigned number expire after 60 days of non-use. 2015 CBS Broadcasting Inc. All Rights Reserved. 15California Civil Code Section 1749.5(d)(3); 83 Ops. Statutes 2007, chapter 640 (SB 250). If the rate under the ordinance is less than one dollar ($1) per month per access line, including any adjustments for inflation, the new rate is 0 percent. Therefore, the 60 minutes of prepaid airtime is sold for $20.00 ($119.99 $99.99). By paying for a specific amount of data usage and talk minutes in advance, you know exactly how much is allotted on your device. Prepaid cards do not expire. To contact us, or to sign up for our newsletter, please visit our Contact page or reach out to the relevant attorney directly through their bio page. Your customer pays with her PayPal account. The Attorney General's Opinion concluded that a gift certificate for a meal sold by a restaurant may not contain an expiration date. Bank gift cards are both flexible and convenient as they usually tap into a leading credit card network and can be used at many stores. . A. If a customer purchased a series certificate that can be used to purchase classes value at $30, the series certificate issued by SoulCycle displayed as SOUL30. (For a $34 pass, the series certificate was SOUL34.) Prepaid expenses are future expenses that are paid in advance and hence recognized initially as an asset. For an overview and comparison of federal and California gift card law, please see Tables A and B, attached. California Business and Professions Code Section 17538.9 permits certain fees and practices with respect to prepaid calling cards. As with sales and use tax, the local charge rate varies depending on the location of the sale and in some instances local charges will not apply (for example, sellers with de minimis sales of prepaid MTS of less than $15,000 during the previous calendar year are not required to collect local charges). Toll lines used in the collection and dissemination of the news for public press. 911 Surcharge, 988 Surcharge, and Local Charge Rates, Electronic Funds Transfer (EFT) - Frequently Asked Questions (FAQ's), Filing Claims for Refund - Special Taxes and Fees, Local Prepaid Mobile Telephony Services Collection Act (42100-42111), subdivision (e) of Revenue and Taxation code (RTC) section 42020, Pay-As-You-Go cell phone with minutes/airtime, Prepaid telephone calling cards vs. prepaid wireless calling cards, SIM cards sold with prepaid wireless airtime/minutes, Prepaid products and services sold for use outside of California, Kiosks selling prepaid top-up airtime/minutes, Consumers that want to file a claim for refund for local charges, Telecommunication Service Suppliers (Service Suppliers), Medical alert devices and inmate call systems, Multiple Service Suppliers Furnishing Services Using the Same Access Line, Local Prepaid Mobile Telephony Services Collection Act Law, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2023, New 988 Surcharge and Rates for the 911 and 988 Surcharges Effective January 1, 2023, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2022, Emergency Telephone Users (911) Surcharge 2022 Rate and Mandatory Online Filing for Service Suppliers, Collection of Local Charges Extended through December 31, 2025, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2020, Emergency Telephone Users (911) Surcharge Rate Effective January 1, 2020 through December 31, 2020, Collection of 911 Surcharge Required by Sellers Beginning January 1, 2020; Collection of Local Charges by Sellers Extended through December 31, 2020, Emergency Telephone Users (911) Surcharge Rate Effective January 1, 2021 through December 31, 2021, The Emergency Telephone Users Surcharge Return Will Move to Our New Online Services System Effective November 9, 2020, Important Notice Regarding Your Emergency Telephone Users Surcharge Return, Changes to the Emergency Telephone Users (911) Surcharge Effective January 1, 2020, Information for Local Jurisdictions and Districts, Total due on sale (Price of Phone + Airtime + 911 Surcharge + 988 Surcharge + Local Charges + Sales Tax), Prepaid phone (see computation below for amount of sales tax included), 1000 minutes of airtime (911 Surcharge and local charges included), Local charges included in selling price (see computation below), Total due on sale* (price of phone + price of airtime), Total due on sale (single price of phone and airtime + 911 Surcharge + 988 Surcharge + local charges + sales tax), Prepaid phone + 10 minutes of airtime (or $5 in airtime), Total due on sale (price of phone + airtime + sales tax), Prepaid smartphone and 60 minutes of airtime, Total due on sale (prepaid smartphone and 60 minutes of airtime + 911 Surcharge + 988 Surcharge + local charges + sales tax), SIM card + one month unlimited talk & text, Total due on sale (SIM card + one month unlimited talk & text + 911 Surcharge + 988 Surcharge + local charges), Selling price of prepaid wireless airtime card. The Act requires that any prepaid goods or services with a value of over $50 must have a written contract. Federal banking regulators recently have ordered that national banks provide better disclosure of these fees, including placing expiration dates on the front of cards; disclosing any monthly maintenance or inactivity fees; and providing a phone number or website for detailed information. Are a "gift certificate" and a "gift card" the same thing? Last year, SoulCycle paid out as much as $9.2 million in a class-action lawsuit due to the expiration date. The contract must have complete details of the transaction and full disclosure of any credit terms. A. Prepared by: John C. Lamb, Senior Staff Counsel, Legal Services Unit, January 2004; Revised by Norine Marks, Senior Staff Counsel, July 2008; revised by Claire Yazigi, Staff Counsel, December 2010. This example assumes a 13.76 percent local charge rate. You may also try to close out your account by requesting that your balance be mailed to you in the form of a check. Access lines when imposition of the surcharge would be in violation of the Constitution of the United States, the United States Code, or the laws of the State of California. We do not endorse the third-party or guarantee the accuracy of this third-party information. No, unless: Expiration of the underlying funds (as opposed to the expiration of the card itself) is the later of (1) 5 years after the certificate was initially issued or the date on which funds were last loaded to a store gift card or general use prepaid card or (2) the expiration date for the . 112 Code of Federal Regulations, Section 205.20. Because the sale does not occur at your San Jose store, the customer's known California address determines where the sale occurs and the proper local charges. Additionally, you should charge your customer local charges at the rate listed for the city of Sacramento (if any). If the service supplier has already paid the local charges directly to the local jurisdiction, you should contact your local jurisdiction to request a refund of the local charges. A Local Charge Agreement for state collection and administration of local charges, A Certification of ordinance that applies to local charges, A Resolution to authorize representative(s) for the local jurisdiction. Return to myAT&T. In addition, you can find primary contacts for each practice area by visiting our Areas of Practice page. Prepaid wireless calling cards that are loaded onto a cell phone and give the purchaser the ability to use the cell phone are subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). Searches are limited to 75 Dispute the validity of the local tax ordinance. / CBS Sacramento. Single-store cards: The traditional single-business gift card for merchandise or services has the best consumer protection. In California, for example, it's against the law for store gift certificates and gift cards to have an expiration date or dormancy fees (except under certain circumstances), and if the balance on the card is less than $10, you can redeem it for cash. Ever wonder why credit cards expire? (877) 328-9677, or contact your county social services agency. 10California Civil Code Sections 1749.5(a)(1),(f). Atty. 27For example, a supermarket such as Safeway may sell Borders gift cards usable only for merchandise at Borders stores. However the California law does not apply to multiple retailer gift cards such as mall gift cards or bank gift cards including Visa and MasterCard gift cards. Service may be suspended/terminated if used in violation of Acceptable Use Policy. Petro-Canada Mobile | Top-up plan | $25/120 daysBest prepaid plan for bonus perks. You are a seller located outside of California who makes online retail sales of prepaid MTS. This statement may be on the front or back of the card, but must be visible to the purchaser prior to purchase. This was passed in 2009 to limit abuse of consumers by credit card companies and banks. The retail store is generally not the owner or operator of the kiosk, and as such, is not responsible for the collection of the 911 surcharge, 988 surcharge, and any applicable local charges. can prepaid services expire in california. Shop around for the best deal, keep your receipts and record the card balance as you would would with a traditional credit card. Because you do not know your customer's address, you must rely on her mobile phone number to determine if the 911 surcharge, 988 surcharge, and local charges apply. 16California Civil Code Section 1749.5(a)(2). In general, only one 911 surcharge and one 988 surcharge apply to each access line. A Guide to Creating Custom Easter Baskets. If the balance is $10 or more, a business doesn't have to redeem a gift card or the balance left after a purchase for cash. As a result, you'll find such fees and restrictions apply to most of these cards. The 911 and 988 surcharge apply to all telecommunication access lines (wirelines, postpaid wireless lines, and VoIP lines) subscribed in California that allow the user access to the 911 communications system and 988 suicide and crisis lifeline. They also should never have fees. A. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. If the sale is also subject to sales or use tax, the sales/use tax does not apply to the 911 surcharge, 988 surcharge, or local charge amounts. Shannon bought what is called a Joey's VIP Play Pass which allowed ten visits for $60. This means that if your card expired but there's still money left on it, you can request that the card issuer sends you a new card (you may be charged a fee) or they may put the remaining balance on a cheque for you. Additional Public Benefit Programs . For the same reasons asserted in the Legislative Counsel opinion referenced in endnote 16, in our opinion, whether the value of the gift certificate is redeemed in cash or by check would be dependant upon the policy of the seller. Use your Mastercard Gift Card and Mastercard Virtual Gift Card everywhere Debit Mastercard is accepted in the US. The monthly nature of the membership naturally expires before 5 years). The service supplier shall remit the combined surcharges collected to CDTFA in separate amounts for each surcharge. Refill of $100 or more expires in 365 days. An exception to these rules applies to gift cards for food (excluding restaurant meals). In California, most gift cards cannot have any expiration dates or service fees. Gift Cards don't have expiration dates.There is a "valid thru" date indicated on the front of each Gift Card, which means it can't be used after this date. Contrasea. The 911 and 988 surcharges apply to all telecommunication access lines with the exception of: Because medical alert devices and inmate call systems generally do not provide access to the 911 emergency communications system or the 988 suicide and crisis lifeline, the 911 and 988 surcharges usually will not apply. First, not covered by the law were gift cards that could be redeemed for a specific good or service, or experience, such as a spa treatment, hotel stay, or airline flight. By comparison, the law does cover gift certificates that can be applied toward the purchase of a specific good or service, such as a certificate or card redeemable for a spa treatment up to $50.. The cash equivalent value of the class passes was clearly displayed when purchased by the consumerthat is, if a customer purchased a series certificate that can be used to purchase classes valued at $30, the series certificate was displayed as SOUL30., The federal guidance accompanying the CARD Act provides two helpful illustrations. The 911 surcharge, 988 surcharge, and local charge rates may be viewed on our webpage (see 911 Surcharge, 988 Surcharge, and Local Charge Rates for Sellers of Prepaid Mobile Telephony Services (MTS)). As a result, these types of gift cards may not be your best bet. Cancelling a prepaid contract 10-day cooling-off period. The case study of these two cases show the pitfalls of not carefully planning your companys operations in close consultation with a business attorney. In the case of a gift card usable with multiple, unaffiliated sellers, ask about expiration dates and any applicable fees. Second, if the sale is a "known address transaction" it occurs in California and is subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). For instance, the card issuer cannot charge a dormancy or inactivity fee on a gift card unless there has been no activity for one year and the card clearly states its policy toward that fee. Entrepreneurs should consult with a business attorney before proceeding down this path. A gift certificate or gift card sold by a seller that seeks bankruptcy protection may have no value. The Gift Card Granny Mastercard Gift Card and Mastercard Virtual Gift Card are issued by Sutton Bank, Member FDIC, pursuant to a license by Mastercard International Incorporated.