Lowering Utility Taxes

AT&T charged us 900 % tax recently for a call we made! (PDF)

 

The City of Richmond charges 35% tax. Thus $600 in service charges creates $210 in additional taxes. We know of no other city that has a higher utility tax rate than the City of Richmond, Virginia! Click on the links at top to read about two methods to reduce high telephone service utility taxes.

 

Telephone Service Utility Taxes & Fees

E911 charges are levied by local governments to provide fluids for building and maintaining the communications systems that support the emergency and quick response police, fire, and ambulance services. – COR = $3.00.

 

Federal excise taxes are assessed by the U.S. government on telephone services. COR=3%

 

Sales taxes are assessed by state, county, and city governments. In some states, telephone service is subject to sales tax. COR = 5.0%

 

The Federal Subscriber Line Charge is a nationwide charge that is designed to recover a portion of local telephone companies’ costs associated with providing long distance carriers with access to the local phone network. This charge is regulated by the FCC. COR = $6.53 to $7.62

Why is the FCC Line Charge on my second line more than it is for my main line? The FCC has required local phone companies to lower the per-minute costs of providing long distance carriers access to local networks, and the FCC line Charge was restructured to offset a part of that decrease. To preserve the universal service affordability of the customer’s primary or main line, the FCC made the decision to shelter that line from the rate increase, and the increase was applied only to a customer’s additional line or lines.

 

The Local Surcharge ( Richmond tax on tax) is the Gross Receipts tax levied by state governments, and passed through to the customer, on all utility companies doing business in a particular jurisdiction. COR = %2.5%

 

The Federal Universal Service Fund surcharge is a monthly, per-line surcharge paid by the customer to recover local companies’ contribution to the Federal Universal Service Fund. This fund supports telecommunications and information services in schools, public libraries, and rural health-care facilities. The fund also subsidizes local service to high-cost areas and low-income customers. This charge is regulated by the FCC. Not charged by Cavalier Telephone.  COR = .16/line.

 

Local Number Portability charges provide funds for significant upgrades to networks, support services, and database systems that will allow customers to keep their phone numbers when they change local phone companies. Not charged by Cavalier Telephone  COR = .23/line

 

Telecommunications Relay Service surcharge In Virginia referred to as the Virginia Relay Center Surcharge. In Maryland and Pennsylvania , referred to as “TRS”. This charge varies by state. The surcharge is imposed on business and residential customers to fund the dual party relay program and for the purpose of providing telecommunication relay services for the hearing impaired. COR = .16/line

 

Public Right-of-Way Fee: This fee pays for telephone company’s access to the rights of way of public property. City and County governments and the Virginia Department of Transportation incur expenses when phone companies need to disturb streets and highways to install or repair lines. This fee is imposed on residents located in counties or cities in Virginia that have adopted the Public Right-of-Way fee. COR = .63/line.

Infotel Systems - Richmond, Virginia - Business Telephone Systems, Voice & Data Networks, Cabling, Carrier Services  804-266-6600