Baffling Bills: Making Sense of All Those Extra Fees and Taxes
By: Chad Hudnall; Source: AARP Bulletin Date Posted: 2005-09-01 08:44:00-04:00
Federal Excise Tax
A 3 percent tax mandated by the federal government (not the FCC) that is imposed on all telecommunications services—including local, long distance and wireless.
State and Local Taxes
Charge imposed by state and local governments on goods and services.
Universal Service Fund or Connectivity Fee
A charge sometimes passed on to consumers by phone companies, which are required to contribute to a federal fund that ensures service for low-income customers and those living in rural areas. The fund benefits libraries, schools and some health care facilities.
Regulatory Programs Fee
Carriers' fees associated with operating a business—compliance costs, billing expenses, property taxes, etc.—rolled into one; also called "Regulatory Charge."
Wireless Number Pooling and Portability Fee
Charges carriers may impose related to allocating phone numbers and allowing consumers to keep their number when changing carriers.
E911 Charge
A fee for Enhanced 911, which enables emergency responders to locate the origin of a 911 call. Some state charges are mandatory, but some carriers choose to recover their federal E911 payments from customers.
TRS Charge
Fee imposed on the carrier or customer, depending on the state, to help pay for the call center for hearing- and speech-impaired consumers.
Sources: FCC and Consumers Union
Additional Related Links
Tips for Shopping for Cell Phones and Selecting a Service Provider (AARP.org)
A Look at Prepaid Cell Phone Services (AARP.org)
Herusnow.org, a project of Consumers Union, for tips about reading your cell phone bill.
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