Collecting the Municipal Tax for 9-1-1 Service

If you provide telephone services (This link will open a new window), you must collect the municipal tax for 9-1-1 service from every person that has a subscription to a telephone service or that pays a sum in advance for the service. However, you are not required to collect the tax from any person that purchases a telephone service for the purpose of providing it to someone else as a telecommunications service provider.

At least once a year, you must, by any means you consider appropriate, inform the person:

• that you are collecting the municipal tax for 9-1-1 service on the telephone service
• that the tax, for each telephone service, is $0.40 a month per telephone number or, in the case of a multi-line service (This link will open a new window) other than a Centrex service, per outgoing access line

If you reimburse any of your clients the total sum that the client paid for a telephone service for a month, you must also reimburse the client the municipal tax for 9-1-1 service that you collected. You may subtract the tax reimbursed in determining the amount of tax to be remitted for the reporting period during which the tax was reimbursed or within four years after the end of that period.

If you collect from any of your clients an amount as municipal tax for 9-1-1 service in excess of the tax you were required to collect, you must reimburse your client the excess amount within four years after the day on which the amount was collected. You may subtract the amount reimbursed in determining the amount of tax to be remitted for the reporting period during which the amount was reimbursed or within four years after the day on which the amount was collected.

Note

The municipal tax for 9-1-1 service must be included in the cost used to calculate any GST and QST you may be required to collect.