Understanding Regulated and Non-regulated Charges to Your Phone Bills

Written by Karen Thatcher

Unfortunatelyrepparttar subject of taxes as it applies to your telecom bills is broad enough to warrant a lengthy discussion.

In Part 1 of this subject, we'll take a close look atrepparttar 133543 regulated and non-regulated charges to your bills. In Part II, I'll cover a few "rules of thumb" of just how taxes are applied to these charges, and a few tips on how to recover money due to incorrect taxation to certain business entities or non-profit groups.

The charges for local telecommunications services include both regulated and non-regulated types. Taxes are assessed on both. You can find most of these specific charges contained inrepparttar 133544 "summary" section of your bill.

Regulated Charges

Tariffs are developed and filed byrepparttar 133545 Local Exchange Carrier withrepparttar 133546 state and public utility commission. After approval, these public documents define rules under which regulated services will be provided, andrepparttar 133547 charges that will be applied.

Once approved, tariffs haverepparttar 133548 weight of law, and deviations require special approvals byrepparttar 133549 utility commissions. For detailed information on tariffs, visit CCMI. (Center for Communications Management Information) The following are services regulated by tariffs in most states:

Connections torepparttar 133550 central office (CO) and any local usage charges (excludes wireless) Service enhancements are usually regulated. In several states, however, centrex-like services are now unregulated and such deregulation is becoming more common. White-pages directory services (except bold listings) Operator services provided by local exchange companies Service initiation, changes, repair, andrepparttar 133551 like are usually regulated. The expression of such charges may be a "price list" of specific items, or it may be expressed as time and material "rates" for categories of work. Some standard kinds of studies are priced through regulation. Detail of local usage or message units are typical examples. Most "other" services

Understanding the Taxes Imposed on Your Telecom Bills

Written by Karen Thatcher

This issue containsrepparttar second part of a two-part article on regulated and non-regulated charges and taxes placed on them. Unfortunatelyrepparttar 133542 subject of taxes as it applies to your telecom bills is broad enough to warrant a lengthy discussion.

In Part I, we coveredrepparttar 133543 regulated and non-regulated charges that will appear on your bills. This issue will describerepparttar 133544 different kinds of taxes that you will find, what they are paid for and who is exempt from them.

Taxes and tax-like charges can add as much as 25%, and more, to local telephone charges in some jurisdictions. This is an area to which no rules are universally applicable, so all generalities have exceptions. That being said, there are three "rules-of-thumb" which can be useful in understandingrepparttar 133545 taxes placed on your bills.

1. Generally,repparttar 133546 four types of taxes include service fees and charges; franchise tax or surcharges; sales use or special taxes; and federal excise tax.

2. Taxes are not uniformly imposed on all services.

3. Some categories of users are exempt from some taxes. Let's take a closer look at specific taxes you'll encounter on your bills.

Specific Service Fees and Charges These charges may be imposed to support 911 services, operation ofrepparttar 133547 Public Utility Commission (California), provision of special equipment for handicapped persons (California), Universal Service Funds, poison control centers (Texas), etc. The Presubscribed Interexchange Carrier Charge (PICC) would also fall into this category. Such charges may be calculated on a per-line or percentage basis. These fees apply universally and there are no exceptions.

Franchise Taxes or Surcharges

Usually local items, these charges can and may be imposed byrepparttar 133548 county or state governments. Most often these are calculated as a percent ofrepparttar 133549 items that apply, (various local service charges, additional calls or message unit charges, and installation charges), but they may be calculated on some other basis. This tax is called a variety of names, including franchise fee, city tax, municipal charge, surcharge, additional charge (AC), gross receipts tax, etc. As usual, this varies from state to state.

Sales, Use or Special Taxes

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