Understanding the surcharges, taxes, fees and other charges on your bill
In addition to the monthly service charges billed for Carrier Services, surcharges, taxes, fees and other charges may be applied at the point of purchase or to your monthly invoice based on the type of wireless service you have, your device purchase method, and your geographical location. Examples include, but are not limited to:
The Administrative Charge is applied per line, per month by Carriers to help defray various costs incurred by Carrier, including, but not limited to: charges we, or our agents, pay local telephone companies for delivering calls from our customers to their customers; fees and assessments on our network facilities and services; property taxes; and the costs we incur responding to regulatory and legal obligations. The Administrative Charge appears as a separate line item under surcharges of your invoice. This charge is not a tax and is not an amount we are required to collect from you by law. The Administrative Charge and the components used to calculate this charge are subject to change from time to time.
The Regulatory Charge is assessed per line, per month by Carrier to help defray costs of various federal, state, and local regulatory programs. The Regulatory Charge is not a tax and is not an amount we are required to collect from you by law. The Regulatory Charge and the components used to calculate this charge are subject to change from time to time.
Gross Receipts Recovery
Some states, counties, and cities impose gross receipts taxes and excise taxes on telecommunications providers, which may cover wireless communications services, sales and rentals of wireless devices, and other services Carriers provides. Carrier may choose to recover the costs associated with these gross receipts taxes by charging customers a monthly recovery fee on each line of service. Gross Receipts Fees appear as a separate line item in the surcharges or Surcharges and Fees section of your invoice. These charges are not taxes and are not an amount we are required to collect from you by law.
State & Local Taxes
States, counties, cities, and special taxing districts may assess various taxes on wireless communication services, sales and rentals of wireless phones, and other services Carrier provides. Applicable taxes are collected by Carriers and remitted to the jurisdiction that is assessing the tax.
State & Local Required 911 Charges
Some states and localities require wireless carriers to collect a fee for 911 funds. These fees vary by state and locality. Applicable taxes are collected by Carriers and remitted to the jurisdiction that is assessing the tax.
Federal & State Universal Service Fund Assessment
Federal: All interstate telecommunications service providers are required to contribute to the Federal Universal Service Fund (USF). The Federal USF subsidizes telecommunications services in rural and high-cost areas, services for low-income consumers, and services for schools, libraries, and rural health care providers. Carriers charges a monthly fee per line to recover the cost of these contributions and may include other charges also related to this governmental program. There are different assessment rates applicable to long distance and international charges, and to non-long distance charges, creating two line items on the invoice. This charge is not a tax or a government-imposed fee. The rate of this monthly charge can vary quarterly based on the USF contribution factor established by the Federal Communications Commission. As of January 1, 2020, the Federal USF contribution rate is 21.2%.
State: Telecommunication service providers may also be required to contribute to a State Universal Service Fund (USF). The funds collected may be used to assist in providing universal service and to a variety of other programs at the state level. This charge is not a tax or government-imposed fee.
Electronic Waste Recycling Fee: Some states require Carriers to collect an E-Waste Recycling Fee on certain electronic devices.
California State Customers: The State of California requires retailers to collect an Electronic Waste Recycling Fee (or E-Waste Recycling Fee) on certain “Covered Electronic Devices” sold in California.
Last updated Jan 01, 2020