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| What are some common taxes I may see on my invoice? |
The following taxes are those that clients may find as a line item on their telecommunications bill from their local State, County, or the Federal government:
Sales Tax & Service Tax:: Sales taxes are imposed on the purchase of goods and services.
State Excise Tax: Excise taxes are imposed at the retail level. They are defined as taxes charged on goods and services that are delivered within the state.
Federal Excise Tax: Federal Tax based on goods and services that are offered and delivered within the country. These taxes are imposed at a retail level.
E911 Tax: This tax is used to fund the Emergency 911 System to which telecommunications companies are required to provide access in accordance with Federal regulation.
Federal Universal Service Fund: The Federal Universal Service Fund (FUSF) charge is imposed by the FCC to fund schools, libraries, rural health care support, lifeline, link-up, and the high cost fund.
State Universal Service Fund: The purpose of this fund varies by state. The funds are normally used for subsidizing the costs for telecommunication needs in remote or rural locations. This can also be specific to a business line.
State High Cost Fund Tax: State tax levied to subsidize the costs for telecommunications users in remote or rural locations.
Transit Tax: A specific local tax used to support a transportation district or program for a state, county, or district.
Municipal Right of Way Tax: Tax levied by local telephone services to offset the costs of maintaining dedicated pieces of land intended for the accommodation of traffic movements, utilities, drainage, and other similar public uses. In most cases, charges are assessed per telephone line.
P.U.C. Fee: P.U.C. stands for Public Utility Commission. These fees are used to fund local Public Utility Commissions in the area of service.
Telecommunications Relay Service Surcharge: Tax levied in order to fund programs that provide access to telecommunications services for the hearing impaired
If you have need of any further information about a specific tax, please inquire at your local Department of Taxation and Finance.
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