Calif. Extends Tax On Prepaid Mobile Phone Services

California extended a law allowing localities to impose a utility users tax on prepaid wireless telecommunications services until the start of 2026, through a bill signed by the governor.

S.B. 1441, signed Friday by Democratic Gov. Gavin Newsom, will extend the sunset date for the utility tax to Jan. 1, 2026. The tax was previously scheduled to sunset Jan. 1, 2020. The tax exempts sellers making less than $15,000 in sales.

The extension would allow localities to make up for lost funds due to the economic effects of the novel coronavirus pandemic, according to a fiscal analysis of the bill. The bill was authored by Sen. Mike McGuire, D-Healdsburg.

--Editing by Vincent Sherry. 

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