Prepaid MTS Surcharge - Information for California Prepaid Service Customers

Before January 1, 2019, sellers of prepaid wireless service were required to collect a prepaid MTS surcharge from California customers. This surcharge recovered both state and local governmental charges—taxes, surcharges, and fees—from customers. Due to a change in law, the prepaid MTS surcharge will not be used to recover state governmental charges from customers after December 31, 2018. Local governmental charges will continue to be recovered, where applicable. Because state governmental charges will no longer be recovered through the prepaid MTS surcharge, the prepaid MTS surcharge rate will be lower after December 31, 2018, and will be zero in many locations. See an example.

Effective January 1, 2019, state governmental charges will no longer be paid by you via the prepaid MTS surcharge on top of your payment for prepaid wireless service. Instead, the following California Public Utilities Commission ("CPUC") surcharges and fee and California Department of Tax and Fee Administration ("CDTFA") surcharge will apply to the portion of your payment that is used for intrastate telecommunications service:

  • CPUC Universal Lifeline Telephone Service surcharge (4.75%)
  • CPUC Deaf and Disabled Telecommunications Program surcharge (0.5%)
  • CPUC California High Cost Fund A surcharge (0.35%)
  • CPUC California High Cost Fund B surcharge (0.0%)
  • CPUC California Teleconnect Fund surcharge (0.78%)
  • CPUC California Advanced Services Fund surcharge (0.56%)
  • CPUC user fee (0.33%)
  • CDTFA Emergency Telephone Users surcharge (0.75%)

Verizon Wireless will calculate and remit these state surcharges and fee to the CPUC and CDTFA but this will not affect the amount credited to your Verizon Wireless prepaid account. For example, if you pay $100.00 for service, the full $100.00 will be credited to your Verizon Wireless prepaid account.

This notice is for informational purposes only. To contact Verizon Wireless, please go to the Verizon Wireless Contact Us page. Questions on the CPUC surcharges and fee may be directed to the CPUC at (800) 848-5580. Questions on the CDTFA surcharge may be directed to the CDTFA at (800) 400-7115.

Example of changes

Here's a comparison of the prepaid MTS surcharge before and after January 1, 2019.

Before 1/1/19 - If you purchased $100.00 of prepaid wireless service during 2018 in the City of Chula Vista (San Diego County), a 10.8% prepaid MTS surcharge would have been collected in addition to the $100.00 price of the prepaid wireless service, so that your total cost would have been:

Service price
$100
Prepaid MTS surchage 10.80
Total cost
$110.80


Effective 1/1/19
- If you purchase $100.00 of prepaid wireless service in the City of Chula Vista (San Diego County), then a 4.5% local prepaid MTS surcharge will be collected in addition to the $100.00 price of the prepaid wireless service, so that your total cost will be:

Service price $100.00
Prepaid MTS surcharge
4.50
Total cost $104.50

 

 

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