Important Notice for Metro by T-Mobile Prepaid Wireless Customers in California
This notice provides information about a recent Federal court decision and its impact on California State and Local Taxes, Fees and Surcharges that are included (when applicable) in the price of your prepaid service charges (plans, fees and features).
The amount you pay for monthly service will not change.
On November 5, 2018, the Federal District Court in the Northern District of California issued a decision in Metro by T-Mobile v. Picker, et. al. Case No. 3:17-cv-05959-SI declaring that the California Prepaid Mobile Telephony Surcharge (“MTS Surcharge”) is unconstitutional and pre-empted by Federal law. Subsequently, on November 16, the Court enjoined the California Public Utility Commission (CPUC) and any other state or local jurisdiction in California from enforcing the MTS Surcharge imposed by the California Prepaid Mobile Telephony Services Surcharge Collection Act (“Prepaid Collection Act,” enacted as Part 21 of the California Revenue & Taxation Code). Although the CPUC is appealing the District Court’s decision, the injunction remains in effect.
The Court’s decision and injunction ensure that the CPUC mandated end-user surcharges and user fees will be collected in a fair and non-discriminatory manner—at the same rates as, and in the same manner as, postpaid wireless services (i.e., based on intrastate telecommunications service revenues).
What is changing?
Metro by T-Mobile recently made several changes to revert its tax and surcharge collection and presentation to the way it was prior to January 1, 2016, when the MTS Surcharge first became effective. This means that instead of seeing a single “MTS Surcharge” line on your Activation and/or Monthly Statements, you will see individual state and local taxes, fees and surcharges, as follows:
- California Public Utilities Commission Telecommunications All-End-User Surcharges and User Fee: Mandated end-user surcharges that support various public programs and Public Utilities Commission activities.
- Universal Lifeline Telephone Service (ULTS)
- Deaf and Disabled Telecommunications Program (DDTP) (“Relay Fund”)
- High Cost Fund-A (CHCF-A)
- High Cost Fund-B (CHCF-B) (currently 0.0%)
- Teleconnect Fund (CTF)
- Advanced Service Fund (ASF)
- The “MTS Increment” that the CPUC imposed on prepaid wireless customers no longer applies under the District Court’s decision and injunction (which invalidated the Prepaid Collection Act).
- After making a payment, you will no longer receive a 2nd text message regarding the MTS Surcharge.
- The rates of the end-user surcharges may change periodically. More information on each of these programs and the current surcharge rates can be found at: http://cpuc.ca.gov/General.aspx?id=1124
- California 911 Emergency Telephone Users Surcharge: A mandatory statewide surcharge imposed by the California Office of Emergency Services to support the 9-1-1 emergency response system. This shows up as “State 911 Tax” on your statement.
- Local MTS Surcharge
- Utility User Tax: A tax imposed by some cities and counties to fund local services. Tax rates will vary depending on the locality where the service is purchased. Please contact your city or county government for more information.
- Local 911 Emergency Telephone Service Access Charge: A tax imposed by some cities to support local 9-1-1 emergency response systems. Tax rates will vary depending on the locality where the service is purchased. Please contact your city or county government for more information.
Note, the Court’s decision did not impact the Local Mobile Telephony Services Collection Act (Part 21.1 of the California Revenue & Taxation Code).
For additional information about these changes please contact Metro by T-Mobile by dialing *611 or (888) 863-8768 from your wireless device.