State Tax Assessor v. Tracfone Wireless, Inc.

Summary

The court held that TracFone’s Lifeline SafeLink service was not “paid for in advance” because federal subsidies were generally reimbursed only after subscribers used the service, so the prepaid wireless fee did not apply. It nevertheless held that the service was sold for consideration because TracFone received payments from USAC, making it subject to the service provider tax during the audit period. The court also held that the statutory notice requirement did not create a defense to the assessment and affirmed denial of TracFone’s motion to compel.