Prepaid Wireless E911 Surcharge Rate Change, Effective November 1, 2024

As noted above, P.A. 103-781 amended the Prepaid Wireless 9-1-1 Surcharge Act to reestablish Chicago’s authority to impose a nine-percent Chicago E911 surcharge rate. 50 ILCS 753/15(a-5). The Act provides, however, that any change in the rate of the Chicago-imposed surcharge shall take effect on the first day of the first calendar month to occur at least 60 days after the enactment of the change. P.A. 103-781 was signed into law on August 5, 2024, so the nine-percent rate takes effect on November 1, 2024.

The Prepaid Wireless E911 Surcharge is a charge imposed on the consumer, to be collected by the seller, when a retail transaction takes place that includes prepaid wireless telecommunications service.

IMPORTANT: The E911 Surcharge rate is only applied to the receipts from prepaid wireless telecommunications service sales. Other tangible personal property sold in the same transaction, such as batteries or electronic games, are not subject to the surcharge.

If you sell services subject to the E911 Surcharge that are bundled with other tangible personal property, but you do not separate those services from the other items on the receipt or invoice, or if you do not otherwise document the separation in your records, the entire sale is subject to the E911 Surcharge. Retailers must disclose the surcharge by separately stating the figure on the receipt or invoice or through other documentation. Retailers’ records must clearly identify the surcharge for retail transactions.

Prepaid wireless telecommunications service is service for which the consumer must pay in advance and is sold in predetermined units or dollars. As the predetermined units are used, the amount remaining available for use declines in a known amount. Examples include prepaid calling cards and minutes added to “pay-as-you-go” phones.

If you have receipts from sales of prepaid wireless telecommunications service subject to both the new, November 1st surcharge rate in Chicago and the Chicago surcharge rate in effect prior to November 1st (e.g., quarterly or annual filers of Form ST-1), you must report any sales at the prior rate using Line 3a of Schedule B on Form ST-1. Sales at the surcharge rate in effect November 1st are reported on Line 2a of Schedule B.

Note: Only use Line 3a of Schedule B when you need to report sales subject to a surcharge rate that is different than the rate in effect at the time you file your return. We do not permit use of Line 3a for any other purpose.

No. The E911 Surcharge rate outside the city of Chicago remains at 3 percent (.03).

No. Absent changes in future legislation, the E911 Surcharge rate for the city of Chicago shall remain at 9 percent (.09) only until July 1, 2029.

Use the Other Miscellaneous Taxes, Fees, and Surcharges page in our Tax Rate Database on our website at tax.illinois.gov to look up location specific tax and surcharge rates. If you file electronically using MyTax Illinois, the rates will be populated for you according to your registration.