Explanations for each individual tax are available on the back of page 1 of the paper invoice, and on the Bill Details section of Your Account. Telephone service is subject to a number of federally mandated taxes and surcharges that help finance the different regulatory bodies, such as the Federal Communications Commission and the state Public Utilities Commissions, and sponsor programs that benefit all telephone subscribers, please see the descriptions below. Most common taxes for residential long distance customers in the United States are as follows:
Federal & State Universal Service Funds (USF): Surcharges to recover our costs of contributing to Federal and State Universal Service Funds, which are mandated by state laws and/or rules to provide affordable telecommunications services to all citizens, including low-income, eligible schools and libraries, rural health providers, and consumers in high cost service areas.
Federal Excise Tax: A tax imposed on consumers for the use of taxable telecommunications services, including all local and long distance service and all surcharges. Private communications services, installation charges and some services for resale are not taxed. State Statutory Gross Receipts Tax: A tax on total revenue paid by all telephone companies. This tax funds the Public Utility Commissions and other state services. State and Local Sales Tax: Cities, states and counties may levy taxes on long distance calls and some services and features. PRIMUS collects all taxes and remits them to the proper jurisdiction.
|
