| Taxes and tax-like charges can add as
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| | taxes generally apply to local service
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| much as 25%, and more, to local telephone
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| | charges, additional calls or message unit
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| charges in some jurisdictions. This is an
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| | charges, installation charges, and
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| area to which no rules are universally
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| | intrastate toll charges. (Most states
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| applicable, so all generalities have
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| | also tax interstate toll charges.) And
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| exceptions. That being said, there are
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| | again, these taxes are most often a
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| three "rules-of-thumb" which can be
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| | percent of the items to which they apply.
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| useful in understanding the taxes placed
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| | That base may include franchise taxes,
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| on your bills.1. Generally, the four
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| | surcharges or other service fees. In
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| types of taxes include service fees and
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| | other words, you are taxed on
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| charges; franchise tax or surcharges;
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| | taxes!Federal Excise Tax
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| sales use or special taxes; and federal
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| | This tax is imposed by Congress on
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| excise tax.2.Taxes are not uniformly
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| | non-exempt items. It generally applies to
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| imposed on all services.3.Some categories
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| | regulated services, except private lines,
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| of users are exempt from some taxes.Let's
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| | mileage, centrex-related enhancements,
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| take a closer look at specific taxes
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| | service and installation charges, and
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| you'll encounter on your bills.Specific
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| | some other services. The base on which
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| Service Fees and Charges
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| | the tax is calculated may include
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| These charges may be imposed to support
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| | franchise taxes, surcharges, and gross
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| 911 services, operation of the Public
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| | receipts taxes. Originally a
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| Utility Commission (California),
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| | Spanish-American War "luxury" tax, the
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| provision of special equipment for
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| | rate has varied between 1% and 10% over
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| handicapped persons (California),
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| | the years, but has been held constant at
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| Universal Service Funds, poison control
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| | 3% since 1983.Remember, taxes are not
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| centers (Texas), etc. The Presubscribed
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| | uniformly imposed on all services. For
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| Interexchange Carrier Charge (PICC) would
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| | example, white-page directory advertising
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| also fall into this category. Such
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| | is not taxed in most states, unless this
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| charges may be calculated on a per-line
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| | statement item includes other items.
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| or percentage basis. These fees apply
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| | (Arkansas and Oklahoma are exceptions,
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| universally and there are no
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| | however.)Who is Exempt?Charities,
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| exceptions.Franchise Taxes or Surcharges
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| | churches, schoools, nonprofit educational
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| Usually local items, these charges can
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| | and hospital operations, certain other
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| and may be imposed by the county or state
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| | entities that receive government funding,
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| governments. Most often these are
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| | foreign counselor operations, and others,
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| calculated as a percent of the items that
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| | may be exempt from state and/or federal
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| apply, (various local service charges,
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| | taxes. For example, common carriers,
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| additional calls or message unit charges,
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| | newspapers and broadcast companies may be
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| and installation charges), but they may
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| | exempt from federal tax on some
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| be calculated on some other basis. This
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| | services.To understand the specific
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| tax is called a variety of names,
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| | services that are exempt from federal
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| including franchise fee, city tax,
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| | tax, refer to the Internal Revenue
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| municipal charge, surcharge, additional
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| | Service publication 510 entitled
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| charge (AC), gross receipts tax, etc. As
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| | Communications Tax. This publication is
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| usual, this varies from state to
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| | very specific as to what taxes are
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| state.Sales, Use or Special Taxes
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| | federally imposed and which are exempt.As
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| These taxes may be imposed by a
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| | you can see, taxes can be a complicated
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| municipality, county, school district,
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| | subject as it applies to your telecom
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| transportation district, state or other
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| | bills. But understanding them can be a
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| taxing body. The "state and local taxes"
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| | major step in reducing your costs when
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| section of your bill may be a combination
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| | doing a cost-reduction study.
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| of such items. Sales, use and special
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