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Taxes, Fees, Surcharges, Surcredits

  • Service Type
  • Regulatory or Jurisdictional Entity
  • Tax/Fee/Surcharge Name
  • Description
  • Amount or Percentage of the service tax, fee, surcharge or surcredit
  • URL
  • Effective Date
  • Purpose of the service tax, fee, surcharge or surcredit:
  • Citations in law, regulation or order
  • is the State exempt? (yes/no)
  • Notes

  • 22.2.3.a Cloud Hosted VoIp Packages

    22.2.4.a Additional Cloud Hosted VoIp Services

    22.2.5.a International Off-Net Calling with Landline Termination

    22.2.5.c International Off-Net Calling with Mobile Termination

    30.2.5.2.a Broadband with Internet Service

    30.2.5.2.b Unsolicited Broadband with Internet Service Speeds

  • FCC(Federal Communications Commission)
  • FCC Cost Recovery Fee
  • Regulatory fee charged by the FCC to telecommunications carriers on the voice and data revenues they collect. The FCC allows carriers to recover the cost of the surcharge from its end-user customers
  • Interstate Telecommunication Service Providers (per revenue dollar) $ .005420
  • https://www.fcc.gov/document/fccs-regulatory-fees-order-fiscal-year-2024 https://docs.fcc.gov/public/attachments/FCC-24-93A1.pdf Appendix B
  • 09-06-24
  • To recover the Commission’s costs of carrying out its functions. These functions include enforcement activities, policy and rulemaking activities, user information services, and international activities
  • Sections 6(a) and 9(b) of the Communications Act, as amended, require the Commission to assess and collect regulatory fees every fiscal year
  • No

  • 22.2.3.a Cloud Hosted VoIp Packages

    22.2.4.a Additional Cloud Hosted VoIp Services

    22.2.5.a International Off-Net Calling with Landline Termination

    22.2.5.c International Off-Net Calling with Mobile Termination

  • FCC (Federal Communications Commission)
  • Federal Telecommunications Relay Services Fund (IPCTS)
  • Funding to support Internet Protocol Captioned Telephone Service (IP CTS) used by persons with hearing loss who can speak and have some residual hearing.
  • Automatic Speech Recognition (ASR)-only IP CTS is $1.17 per minute Communications Assistant (CA)- IP CTS is $1.35 per minute
  • https://www.fcc.gov/document/fcc-adopts-ip-captioned-telephone-service-5-year-compensation-plan
  • 09-04-24
  • To compensate providers through Telecommunications Relay Services (TRS) to facilitate telephone calls between persons who are deaf, hard of hearing, or have speech disabilities and other individuals. There is no cost to the users. TRS providers are compensated from either a state or a federal fund, which is administered by the TRS Fund Administrator.
  • 47 CFR § 64 89 FR 71848 (09/04/2024)
  • No

  • 22.2.3.a Cloud Hosted VoIp Packages

    22.2.4.a Additional Cloud Hosted VoIp Services

    22.2.5.a International Off-Net Calling with Landline Termination

    22.2.5.c International Off-Net Calling with Mobile Termination

  • FCC (Federal Communications Commission)
  • Federal Telecommunications Relay Services Fund (Non-IPCTS)
  • The TRS fund compensates TRS providers for reasonable costs of providing interstate telephone transmission services that enable a person with a hearing or speech disability to communicate with a person without hearing or speech disabilities.
  • Traditional (TTY-based) TRS, $6.1229 per minute Speech-to-speech relay service (STS), $7.2539 per minute Captioned telephone service (CTS), $2.7867 per minute
  • https://www.fcc.gov/document/trs-fund-compensation-and-contribution-formulas-2024-25-fund-year
  • 06-28-24
  • To compensate providers through Telecommunications Relay Services (TRS) to facilitate telephone calls between persons who are deaf, hard of hearing, or have speech disabilities and other individuals. There is no cost to the users. TRS providers are compensated from either a state or a federal fund, which is administered by the TRS Fund Administrator.
  • 47 CFR § 64 87 FR 75496 (12/09/2022)
  • No

  • 22.2.3.a Cloud Hosted VoIp Packages

    22.2.4.a Additional Cloud Hosted VoIp Services

    22.2.5.a International Off-Net Calling with Landline Termination

    22.2.5.c International Off-Net Calling with Mobile Termination

    30.2.5.2.a Broadband with Internet Service

    30.2.5.2.b Unsolicited Broadband with Internet Service Speeds

  • FCC (Federal Communications Commission) Adminstered by USAC
  • Federal Universal Service Fund
  • All telecommunications service providers and certain other providers of telecommunications must contribute to the federal Universal Service Fund (USF) to support access to telecommunications services at reasonable rates for those living in rural and high-cost areas, income-eligible consumers, rural health care facilities, and schools and libraries.
  • 35.8% as of Q4 2024
  • https://www.usac.org/service-providers/resources/announcements/#:~:text=FCC%20Announces%204Q%202024%20Contribution,358%20or%2035.8%20percent.
  • 02-08-96
  • The Universal Service Fee (USF) helps to make phone service affordable and available to all Americans, including consumers with low incomes, those living in areas where the costs of providing telephone service is high, schools and libraries, and rural health care providers. The Universal Service Fund (USF) consists of money collected from telecommunications companies that is dedicated to fulfilling the goals of universal service. Telecommunications companies are required to make universal service contributions under the Telecommunications Act of 1996. USAC administers the collection of these contributions, then also administers the disbursement of USF money through four USF programs: Lifeline, E-Rate, High Cost, and Rural Health Care.
  • Title 47, Code of Federal Regulations, Sections 36, 54, and 69.
  • No

  • 22.2.3.a Cloud Hosted VoIp Packages

    22.2.4.a Additional Cloud Hosted VoIp Services

    22.2.5.a International Off-Net Calling with Landline Termination

    22.2.5.c International Off-Net Calling with Mobile Termination

    30.2.5.2.a Broadband with Internet Service

    30.2.5.2.b Unsolicited Broadband with Internet Service Speeds

    30.2.5.3.a - Static IP Address

    30.4.2.1 – Extended Demarcation Wiring Services

  • California Department of Tax and Fee Administration (CDTFA)
  • Sales Tax (State, County & City)
  • Taxes placed on the sale or lease of goods and services in the United States. Sales tax is governed at the state level. In addition to the statewide sales and use tax rate, some cities and counties have voter- or local government-approved district taxes. District tax areas consist of both counties and cities
  • State Base 7.25% Other additional counties/cities vary by location
  • https://www.cdtfa.ca.gov/taxes-and-fees/know-your-rate.htm#:~:text=A%20base%20sales%20and%20use,local%20government%2Dapproved%20district%20taxes.
  • Current
  • To provide revenue to the state's General Fund, to cities and counties through specific state fund allocations, and to other local jurisdictions.
  • Sales and Use Tax Law, Statute 6003 & 6004
  • No

  • 22.2.3.a Cloud Hosted VoIp Packages

    22.2.4.a Additional Cloud Hosted VoIp Services

    22.2.5.a International Off-Net Calling with Landline Termination

    22.2.5.c International Off-Net Calling with Mobile Termination

  • CDTFA
  • Emergency Telephone Users Surcharge (E911)
  • Sellers of prepaid mobile telephony services (MTS) will be required to collect, report, and pay 911 Surcharge, 988 Surcharge, and/or local charges when making retail sales of prepaid MTS to a prepaid MTS consumer. The 911 Surcharge rate above is also the effective rate that telecommunication service suppliers (service suppliers) must collect, report, and pay, on each access line in which a service user subscribes for use in California each month or partial month. The 911 Surcharge applies unless the access line is otherwise tax exempt. The 911 Surcharge rate is also available for viewing by service suppliers on our see our Tax Rates – Special Taxes and Fees webpage
  • $0.30
  • https://www.cdtfa.ca.gov/taxes-and-fees/mts.htm
  • 1-1-20
  • To pay for the costs associated with the design, construction, operation, maintenance, and administration of public safety communications networks serving the jurisdiction.
  • Prepaid Mobile Telephony Services Surcharge. §§ 42010–42018 Exemption sited under Revenue and Taxation Code (RTC) section 41027.
  • YES
  • https://www.cdtfa.ca.gov/industry/sellers-of-prepaid-mobile-telphony-services-and-telecommunication-service-suppliers/industry-topics.htm

  • 22.2.3.a Cloud Hosted VoIp Packages

    22.2.4.a Additional Cloud Hosted VoIp Services

    22.2.5.a International Off-Net Calling with Landline Termination

    22.2.5.c International Off-Net Calling with Mobile Termination

  • Internal Revenue Service
  • Federal Excise Tax
  • Excise tax is an indirect tax on specific goods, services and activities. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.
  • 3%
  • https://www.irs.gov/pub/irs-pdf/p510.pdf
  • 1898
  • The first tax on telephone service was enacted in 1898 to help finance the Spanish-American War. Excise taxes have become an established part of the general budget and the source of funds for various trusts. The U.S. has expanded the definition of items on the excise tax lists as trusts for highways, airports, vaccines, black lung, oil spills, etc
  • Code sec. 4215
  • YES
  • https://www.congress.gov/congressional-report/106th-congress/senate-report/328/1