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Changes to California Prepaid MTS Surcharge

Important Notice for California Prepaid Consumers:

On November 15, 2018, the Prepaid MTS Surcharge Collection Act [visit official site], originally enacted in January 2016, was declared unenforceable by the United States District Court, as it conflicts with federal law.

During the period between 1/1/2016 and 12/31/2018, prepaid wireless sellers were required by California law to collect certain taxes, fees, and mandatory surcharges from prepaid consumers at the time of purchase. These taxes, fees, and surcharges, were combined under a single Prepaid MTS Surcharge. Consumers in certain cities within the state were also charged a Utility User Tax or a Local 911 Charge as part of the Local Prepaid MTS Collection Act.

The Prepaid MTS Surcharge has been replaced effective 1/1/2019. All carriers offering prepaid wireless services must continue to collect certain statewide taxes, fees and mandatory surcharges from prepaid consumers, but the amounts will no longer be combined into a single charge (please refer to itemized list below).

Please note, the Local Prepaid MTS Collection Act is still in effect, and customers in certain cities will continue to incur additional surcharges, as they already do today (click here for rates).

For more information on the changes related to the Prepaid MTS Surcharge, please contact customer care at (800) 683-7392.

Standard Statewide Surcharge Rates:

California LifeLine 4.75% (ULTS)
Deaf & Disabled Telecommunications Program .5% (DDTP)
California High Cost Fund – A .35% (CHCF-A)
California High Cost Fund – B 0% (CHCF-A)
California Teleconnect Fund .78% (CTF)
California Advanced Services Fund .56% CASF
CPUC User Fee .33% (User Fee)
Total 7.27%

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