Understand the taxes and surcharges on your bill

Regulatory recovery fee

These monthly component fees are based on access line, subscriber or usage. They help defray the costs of complying with state regulations (such as telecom relay services for the visually/hearing impaired).

Universal connectivity charge (or federal universal service fund)

This fee is a percentage of interstate and international revenues. It supports a federal fund that ensures the availability of affordable communications services to low income and rural customers (as well as eligible schools, libraries and health care providers).

State and local 911 tax

This monthly tax is tallied by access line, telephone number, account, or usage. It helps states and localities fund the 911 and E911 systems, along with other emergency services.

Federal excise tax

This 3% tax is imposed by the federal government.

State and local sales tax

This tax is owed to the state or local government by subscribers.

Gross receipts taxes; State and local utility taxes

These taxes are levied on service providers; the cost is passed on to subscribers.

State communications services tax

We collect this money on behalf of the state.

Local communications services tax

The rate for this tax varies; we collect it on behalf of the state.