What are the taxes, fees and surcharges on my bill?


What are the taxes, fees and surcharges on my bill?

Because taxes and surcharges differ by state and services provided, you might find some variation of these charges on your bill.

Some taxes and surcharges are mandated by state, local and/or federal authorities. Other surcharges may be imposed by NT&T.

Please note that taxes may be charged based on the full price of a given service, not a discounted, promotional rate.

Federal Access Charge
The Federal Access Charge is a charge that is designed to recover a portion of local telephone companies’ costs associated with providing long distance carriers with access to the local phone network. This charge is regulated by the FCC.

Federal Excise Tax
The Federal excise tax is a tax assessed by the federal government on local telephone service that includes services and facilities sold in connection with local service. The percentage used to calculate the amount of the tax is 3%.

Federal Universal Service Fund
The Federal Universal Service Fund Charge supports the telecommunications needs of consumers living in high-cost service areas, low-income households, schools, libraries and rural healthcare providers. The percentage charged is set by the FCC and is adjusted quarterly.

Sales Tax

Sales tax is assessed by state, county or city governments on telephone services.

911 or E911 Charge

A dedicated surcharge that provides funds for the communications systems that support emergency and quick response to police, fire and ambulance services with identification of phone number and location.

Special District Sales Tax
These are taxes assessed outside the scope of states, counties or cities and are used for transit districts, stadium districts and other special purpose tax districts.

State Universal Service Fund Surcharge

This charge helps to keep basic exchange rates affordable to all customers who live in the state. The funds collected are remitted to the state utility commission.

Telecomm Relay Surcharge

This surcharge helps to fund relay centers that assist hearing and speech impaired individuals make and receive phone calls.

Telephone Assistance Program

This charge is for dedicated monies used to provide telephone subsidies to low-income, elderly or disabled customers who could not afford phone service otherwise.

Deregulated Administrative Fee
The Deregulated Administrative Fee recovers the costs associated with the administration of providing products and services and the reporting required by the Federal Communications Commission.  This fee is not a tax or charge required by the government.