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AB 330

Local Prepaid Mobile Telephony Services Collection Act.

2025-2026 Regular Session Introduced by Chris Rogers

AB 330 establishes local sales tax collection procedures for prepaid mobile telephony services to increase municipal revenue and standardize tax compliance across California retailers.

Chaptered by Secretary of State - Chapter 553, Statutes of 2025.
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WeVote Research Nonpartisan
Bill Summary · AB 330

Legislative bill overview

AB 330 establishes a framework for local jurisdictions in California to collect sales taxes on prepaid mobile telephony services. The bill, now Chapter 553 of the 2025 Statutes, was signed into law in October 2025 with unanimous Senate support. It addresses the tax collection mechanism for prepaid mobile phone services at the local level.

Why is this important

Prepaid mobile services represent a growing market segment, and ensuring proper tax collection protects local government revenue streams that fund essential services like public safety and infrastructure. This bill clarifies collection responsibilities and creates standardized procedures, reducing compliance confusion for retailers and service providers while maximizing tax compliance.

Potential points of contention

  • Retail burden: Small retailers selling prepaid services may face increased administrative costs implementing new collection and reporting procedures
  • Consumer impact: Depending on implementation, prepaid service costs could increase if retailers pass collection compliance costs to customers
  • Competitive concerns: Different treatment of prepaid versus postpaid services may create market distortions or pressure for similar tax treatment on other mobile service types

Compiled from official sources — confirm details with the bill’s official record.

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