State Tax Assessor v. Tracfone Wireless, Inc.

Summary

The court held that TracFone’s Lifeline service was not “paid for in advance” because the federal subsidy was generally paid after service was provided, so the prepaid wireless fee did not apply. It held that the service was nevertheless sold for consideration when TracFone provided minutes and received payment from USAC, making it subject to the service provider tax under the statute then in effect. The court also held that the statutory notice requirement did not create a defense to the assessment and affirmed denial of TracFone’s discovery motion.