Government Taxes, Fees and Other Surcharges
Our Company collects and remits a wide range of federal, state and local taxes, surcharges and fees in support of government programs, or on behalf of government entities that impose them on communications providers, for the sale of goods and services. These charges include, but are not limited to, sales and use taxes, franchise fees and emergency service surcharges. Taxes, Fees and Surcharges vary by jurisdiction and may be as specific as transit, district, city or township.
Customer Exemption from Taxes, Fees and Other Surcharges
Certain Customers may be exempt from some or all taxes listed below. Advanced Integrated Technologies (AiTech) requires specific, annual exemption documentation from each Customer prior to eliminating Customer’s and AiTech’s liability to pay certain Taxes, Fees and Surcharges. Customers who provide state exemption information are automatically exempt from county and city tax.
Federal Excise Tax
A tax imposed directly for certain communications services and is intended to tax services that allow the customer the ability to communicate with all subscribers to the telecommunications network.
State Sales Tax
A tax imposed on the sale, lease or rental of products or services defined as taxable by the state in which you reside. State Taxation rates vary by state.
City, County and Other Local Municipalities Sales Tax
In some instances, cities, counties or other municipalities impose a tax in the sale, lease or rental of products and services defines as taxable by the state in which you reside.
Federal Universal Service Fund (FUSF)
Universal Service Fund surcharges support the provision of affordable telecommunications services to rural, isolated and high cost areas. FUSF also supports the provision of service to low-income residential subscribers, schools, libraries and rural health care programs. All communications companies must contribute to the Federal Universal Service Fund. The FUSF changes quarterly. To learn more, including how funds are collected and disbursed visit www.universalservice.org.
State Universal Service Fund
Many states include a Universal Service Fund to support provisioning of telecommunication services to rural health care providers, low-income residences, schools and libraries. All communications companies must contribute to State Universal Service Funds.
Telecommunications Assistance Lifeline Program (TAP)
These surcharges fund Lifeline programs. These are state run programs to lower the cost of residential telephone and broadband service for persons who meet certain income guidelines, have a disability, or are at least 65 years of age. TAP surcharges are assessed to all telephone customers (except Lifeline recipients).
Telecommunications Access Minnesota (TAM)
TAM program enables telephone conversation for communications impaired persons through the use of special equipment and Relay Service Operators. TAM fees are paid by the state which may recover the costs through a charge applied to the telephone bill of all telephone customers in the state.
Transit Improvement Tax
Administrated by the Minnesota Department of Revenue, this tax is used to fund improvements to the transit system, including light rail, commuter rail and bus rapid transit.
FCC Subscriber Line Charge (PICC)
The FCC Prescribed charge compensates AiTech for the use of its local network to originate and terminate long distance interstate traffic. The FCC caps the rate that local exchange carriers are permitted to charge for this aspect of their network. The FCC Prescribed Charge is a monthly recurring charge and is assessed as a flat rate per line for single and multi-line customers and is subject to Federal tax, State Sales Tax, Federal Universal Fund Surcharges and FCC Regulatory Fees. This is not a charge for long distance service.
Federal Telecommunications Relay Service Fee (TRS)
Allows for recovery of money paid to the federal government for regulatory costs and telecommunications services for the hearing impaired. Additional information regarding the Federal TRS fund may be found on the FCC Website https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs
State Telecommunication Relay Service Fee (TRS)
TRS programs enable telephone conversations for communications impaired persons through the use of special equipment and Relay Service Operators. TRS costs are paid by each state, which may recover these costs through a charge applied to the telephone bill of all telephone customers in a state.
The E911 surcharge funds community 911 emergency telephone systems.
Administrative Cost Recovery
As a telecommunications company AiTech must make various payments to local, state and federal departments and agencies including but not limited to, administration fees, inspection and supervision fees and general public utility commission assessments. A cost recovery is designed to help recover administrative expenses incurred by Advanced Integrated Technologies associated with the management, collection and remittance of these programs. Additionally, the recovery fee may also include recovery costs for legal, intellectual property, cyber-security, compliance and other expenses related to customer privacy protection and anti-fraud protection. The cost recovery is not a tax assessed by any government authority.
Property Tax Surcharge
Property Surcharge allows AiTech to recover a portion of the property tax it pays to our underlying network provider’s state and local jurisdictions.
Number Portability Cost Recovery
Designed to help AiTech defray the costs of providing number portability. Number portability enables customers to retain their existing telephone numbers when they switch to another service provider.