Taxes and Fees

Federal

Federal Excise Tax - All local and long distance services are subject to a 3% federal excise tax.

Number Portability Service Charge - A charge that funds a system that allows you to keep your local telephone number when switching from one local service provider to another.

Federal Universal Service Fund (USF) - Fees are used to fund programs for schools, libraries, low-income consumers, rural heath care providers and to subsidize telephone service in high cost rural areas.

FCC Subscriber Line Charge (Single Line and End User Charge) - A fee that pays for some of the cost of the local portion of the telephone network.


Local and State

Telecommunications Relay Service - In some states a fee is assessed on telephone lines to support telephone service for deaf and disabled.

Gross Receipts Tax - In some states, taxes are assessed against the total of customer billings.

State & Local Sales Tax - Depending on your location, telephone services are subject to state and local sales tax (including cities, counties, special purpose districts and transit authorities.)

911 Emergency Service Fee - Fees pay for the emergency telecommunications system for police, fire and medical services.

State Universal Service Fund (USF) - Fees are used to fund programs for the hearing disabled, low-income subscribers and to subsidize the cost of telephone service in rural and high cost areas.

Municipal Franchise Fee - a fee imposed by some local governments to telecommunication businesses based on the number of access lines for the use to the city right of ways.

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