United States Taxes, Fees, and Surcharges
Information about the taxes, fees, and surcharges listed on the monthly invoices of Global CTI Harmony customers who are located in the United States (US).
This article provides information about the taxes, fees, and surcharges listed on the monthly invoices of Global CTI Harmony customers who are located in the United States. To access this same information for customers located in other countries, see the following:
• Canada Taxes, Fees, and Surcharges
• United Kingdom Taxes, Fees, and Surcharges
• Australia Taxes, Fees, and Surcharges
Global CTI is obligated to administer its customer billing in accordance with the laws and regulations set forth by tax authorities and regulatory agencies at all levels of government (i.e., federal, state, and local). Various jurisdictions and government agencies assess taxes, fees, and surcharges for telephone-related services and programs such as E911 (Emergency Services) that telecommunications providers like Global CTI are obligated to collect from their customers and remit to these agencies. There are also surcharges that telecommunications providers are permitted, but not required, to pass through to customers such as the Federal Universal Service Fund.
The information below provides a representative sample of the most common types of federal, state, and local taxes, fees, and surcharges that are imposed on Global CTI by government agencies and taxing authorities. These are costs that Global CTI must cover to stay in business. Global CTI separately itemizes these taxes, surcharges, and fees on customer invoices rather than include these amounts in higher rates for services. Global CTI applies taxes, fees, or surcharges depending on the types of services subscribed to by its end-user customers. Regulatory fees impacting the telecommunications industry are constantly evolving and are subject to change without notice. If additional or different taxes, surcharges, or fees are imposed on Global CTI in the future, Global CTI will include those taxes, fees, or surcharges in applicable billings. More is available on the Federal Communications Commission (FCC) website at www.fcc.gov.
Federal Taxes and Surcharges
The following sections provide information related to Federal taxes, fees, and surcharges.
Federal Excise Tax
While this tax is no longer applicable to Voice over IP (VoIP) services, this tax may be applicable to certain features of our service offering.
Federal Universal Service Fund (USF) Fee
This surcharge resulted from the Telecommunications Act of 1996 and was amended in 2006 to apply to VoIP service providers. The FCC imposes contribution requirements on service providers but does not prohibit a customer surcharge that is used to recover Global CTI’s costs of contributing to the FCC program. Global CTI is not permitted to recover more than its costs through this surcharge and can only assess surcharges up to its breakeven point. Use the following links to view the FCC Universal Service web site and the USF Contribution Factor web site that provides links to PDFs showing all contribution rates since 2000:
– FCC Universal Service Reference: https://www.fcc.gov/general/universal-service
– USF Contribution Factor: http://www.fcc.gov/encyclopedia/contribution-factor-quarterly-filings-universal-service-fund-usf-management-support
Federal Cost Recovery Charge
The Federal Cost Recovery Charge is assessed by the company to recover amounts remitted by Global CTI to support the Telecommunications Relay Service (TRS). The TRS is used to help pay for relay services that transmit and translate calls for people with hearing or speech disabilities.
Regulatory Recovery Fee
Global CTI’s Regulatory Recovery Fee is a monthly per-profile charge. A portion of the Regulatory Recovery Fee offsets certain costs Global CTI incurs in complying with its regulatory obligations including without limitation (1) upkeep of our E911 systems, (2) legal, regulatory, administrative, and other requirements including federal, state, and local reporting and filing requirements, and (3) costs that Global CTI incurs by reporting and managing payments to third party telecommunications services providers. The Regulatory Recovery Fee is not a government-mandated fee or tax.
Telephone Number Storage Fee
The Telephone Number Storage Fee is a monthly charge to cover the storage of unused telephone numbers. Customers will be assessed a monthly fee for each unused telephone number stored beyond a 90% utilization threshold.
For example, if an account has a total of 80 telephone numbers, including active and inactive numbers, but excluding Programming and Toll-Free Numbers, up to 8 inactive numbers (10% of the total) can be present on the account without incurring storage charges. Each inactive telephone number in excess of 10% of the total numbers will incur a monthly storage fee.
State and Local Taxes, Fees, and Surcharges
Global CTI collects and remits a range of state and local taxes, fees, and surcharges levied on telecommunications and VoIP providers for the sale of information technology goods and services. These taxes and fees vary by jurisdiction and include the types of taxes, fees, and surcharges listed below.
E911 Taxes and Fees – Also known by other names including Emergency Telephone Users Surcharge. This tax can be imposed at the State, County, or local levels in order to fund E911 Emergency Services.
Lifeline – Also known as State Universal Service or State Universal Lifeline Surcharges. Similar to the Federal Universal Service Fund, this charge is assessed on a state level only in a number of states. The funding from this charge helps support services to low-income customers, customers with communication disabilities, and customers who reside in an area that is underserved by small or rural telecom providers where costs of proving service is high. The rate will vary from state to state.
Public Utility Commission (PUC) Tax/Reimbursement Fee – The PUC tax/fee is a charge imposed on users of regulated services, which finances the operational costs of the state regulatory body.
Telecommunications Relay Service (TRS) Surcharge – Also known by other names including “Relay Services & Comm. Devices Fund,” this surcharge is imposed on telecommunications providers and can be passed on to customers for the purpose of providing telecommunications relay services.
High Cost Fund Surcharge – This surcharge is imposed on telecommunications providers and may be passed on to customers to provide telecommunications service in high cost areas.
Utility Users Tax – This is a tax imposed on the consumer for using a utility (telecommunications) service. The tax is commonly assessed as a percentage of the amount billed to each customer for the service.
Municipal Franchise Fee – The municipal franchise fee, sometimes called a “Right-of- Way” fee, is a monthly charge imposed by local jurisdictions and paid by the customer to help recover the costs associated with providing telephone service, to include installation of underground conduit, outside telephone wires, and telephone poles. This fee varies by location and is often based upon an agreement between the local jurisdiction and Global CTI or upon local or state law.
Business and Occupation Taxes – This tax is imposed on a company for the privilege of doing business in the taxing jurisdiction. Business and Occupation taxes are typically imposed on the telecommunications provider. Some states allow the telecommunications provider to pass these taxes on to the customer and identify them as a tax or a surcharge.
Statutory Gross Receipts Tax – This is a tax on the privilege of doing business in the state measured by gross receipts received from business conducted in the state. This tax is typically imposed on the telecommunications provider; however, some states allow the provider to pass the tax on to the customer as in the cases of NY and PA for example. It’s also common to have localities impose a local Gross Receipts Tax such as in the case of New York City and many cities throughout Utah.
License Tax – This is a tax levied on the service provider for the privilege of soliciting and conducting business in a jurisdiction. Generally, a license tax is a flat annual fee, but in some cases it is based on gross receipts.
Service Tax – This is a tax imposed on the privilege of making sales of services.
Sales Taxes and District Tax – These are taxes imposed on the privilege of making sales within a state or a special district (e.g., a rapid transit authority, school district, development zone, etc.).
Deaf Tax Surcharge – This is a surcharge imposed on telecommunications providers that may be passed on to customers to provide telecommunications service to hearing and speech-impaired individuals.
Poison Control Surcharge – This is a surcharge imposed on telecommunications providers that may be passed on to customers to provide funding for Poison Control Centers.
State and Local Excise Tax – Excise tax is imposed on payments received for the privilege of sending or receiving telecommunications messages.
Communications Tax – This is a tax imposed on telecommunication services in many states, for example, FL and VA, just to name two.
For additional information on applicable taxes and surcharges, you can also visit the following government sponsored websites:
Arkansas – www.dfa.arkansas.gov
Arizona – www.azdor.gov
California – http://www.boe.ca.gov/sutax/sutprograms.htm
California – http://www.cpuc.ca.gov/surcharges/
Colorado – https://www.colorado.gov/revenue
Connecticut – http://www.ct.gov/drs/site/default.asp
Washington DC – http://otr.cfo.dc.gov/
Florida – http://dor.myflorida.com/dor/
Illinois – www.revenue.state.il.us
Indiana – http://www.in.gov/dor/index.htm
Kansas – www.ksrevenue.org
Massachusetts – www.dor.state.ma.us
Maryland – http://business.marylandtaxes.com/taxinfo/utilsurcharge.asp
Michigan – www.michigan.gov/treasury
Minnesota – www.taxes.state.mn.us
Missouri – www.dor.mo.gov
North Carolina – www.dor.state.nc.us
New Hampshire – www.nh.gov/revenue
New Jersey – www.state.nj.us/treasury/taxation
New York – https://www.tax.ny.gov/
New York City – http://www1.nyc.gov/site/finance/index.page
Ohio – http://tax.ohio.gov
Pennsylvania – http://www.revenue.state.pa.us/portal/server.pt/community/revenue_home/10648
Rhode Island – http://www.tax.state.ri.us/
South Carolina – http://www.sctax.org/default.htm
Tennessee – http://www.state.tn.us/revenue/
Texas – http://www.window.state.tx.us/taxes/
Utah – http://tax.utah.gov/business
Virginia – http://www.tax.virginia.gov
Washington – http://dor.wa.gov/Content/Home/Default.aspx
Wisconsin – https://www.revenue.wi.gov/