Telecommunications is one of the four most highly taxed industries in the U.S.

As a result of deregulation, convergence and a variety of technological, regulatory and economic factors, federal, state and local taxes and other impositions are growing. There are currently a wide-variety of federal, state and local taxes, including sales, use, excise and transaction taxes, 911/E911 fees, and other “tax-like” regulatory fees applicable to communications services and products.

The FCC’s Truth-in-Billing rules: The FCC has created a webpage to assist consumers in understand their rights in addition to taxes and fees.  Please review FCC: Understanding your bill and FCC: Regulatory Fees

 

State implications vary individually for each state and by service address. Please visit your respective state public utility commissions, state legislatures, county and city governments for detailed information.

Universal Service Fund

The Universal Service Fund (USF) is a system of telecommunications subsidies and fees managed by the United States Federal Communications Commission (FCC) intended to promote universal access to telecommunications services in the United States. This fee is not a tax.
Universal Service Fund – Wikipedia, the free encyclopedia

See the latest rates:

USAC: CONTRIBUTION FACTORS

Federal Excise Tax

Title 26, United States Code, Sections 4251 and 3; United States Congress (1898). The federal excise tax was originally initiated as a luxury tax to pay for the Spanish-American War. Now, all proceeds are used for general revenue purposes. Also known as “Federal Tax” or “Federal Communications Tax”

E911 (State/Local) Tax

Each state/local government sets their 911/E911 rates individually. Please see your state’s Dept. of Revenue for detailed rates.

The E911 Tax is a state and local government imposed monthly tax on switched access (wireline) lines, radio access (wireless telephone numbers) lines, and Voice Over Internet Protocol (VoIP) service

State Communications Tax and Gross Receipts

Tax implications vary per state, if applicable. Please contact your state Department of Revenue for specific information. State tax is imposed on intrastate messages as well as interstate messages (i.e., those that originate or terminate in your state and are billed to a service address within your state). The types of telecommunications which are taxable include, but are not limited to, messages or information transmitted through use of local, toll, or wide area telephone services; private line services; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunication services; specialized mobile radio; stationary two-way radio; paging services; any other form of mobile and portable one-way or two-way communications; and any other transmission of messages or information by electronic or similar means.

Local Communications Tax and Gross Receipts

Tax implications vary per county/local area, if applicable. Please contact your state Department of Revenue for specific information. County/Local tax is imposed on intrastate messages as well as interstate messages (i.e., those that originate or terminate in your state and are billed to a service address within your state). The types of telecommunications which are taxable include, but are not limited to, messages or information transmitted through use of local, toll, or wide area telephone services; private line services; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunication services; specialized mobile radio; stationary two-way radio; paging services; any other form of mobile and portable one-way or two-way communications; and any other transmission of messages or information by electronic or similar means.

Regulatory Fee

Regulatory Fee’s are combination of fees, tariffs, access and usage charges imposed on Vinix by a wide spectrum of governmental entities, such as the Federal Communications Commission (FCC), state public utility commissions, state legislatures, county and city governments. This fee is not a tax.

Poison Control Fee

Where applicable, your State’s Department of Health may impose a tax which is  allocated to fund poison research and maintenance of the poison control centers.