Telephone FAQ: Can you provide a description of the most common taxes, fees and surcharges on my Knology Telephone invoice?
Can you provide a description of the most common taxes, fees and surcharges on my Knology Telephone invoice?
Federal Excise Tax:
In a recent decision by the Internal Revenue Service (IRS), the federal excise tax of 3% is no longer imposed on bundled local and long distance service, and long distance service. This decision was effective July 31, 2006. Consumers who paid these taxes after February 28, 2003 and before August 1, 2006 are eligible for a refund or credit.
The IRS provides information on claiming the credits or refunds on 2006 tax forms and has also created a short form for individuals who don't file tax returns to claim the credits or refunds. More information on the credits or refunds can be obtained by calling your local IRS office or accessing www.irs.gov.
Consumers are still required to pay the federal excise tax on local service if it is not included in a bundle of other services. For example, the 3% federal excise tax is applied to basic telephone service.
State, City and County Tax:
These taxes are mandated by the state and local governments and are imposed on all telecommunications services.
E911:
Per Kansas statute, this charge is to help pay for emergency dispatch services such as fire and rescue. Knology collects only the amount it is required to remit to the county emergency answering center.
Federal Subscriber Line Charge:
This charge, instituted by telecommunications providers in 1984, covers the costs of providing a local phone network. The Federal Communications Commission sets the maximum allowable Federal Subscriber Line Charge. This is not a government charge or tax.
Federal Universal Service and Kansas Universal Service Fees:
Since 1930, it has been our nation's policy to promote telephone service to all households. These fees help make phone service affordable and available to all Americans, including consumers with low incomes and those living in areas where the cost of providing telephone service is high. In addition, the fees help support services in schools, libraries and rural health care facilities. The federal fee applies to all services that are considered “interstate” (such as long distance service originating from your phone and terminating outside of Kansas). The Kansas Universal Service Fee applies to all local services, such as your local line, calling features and long distance calls within the state of Kansas. Federal and State legislation require all retail providers of telecommunications services to contribute to the Universal Service funds. Carriers are permitted to charge a monthly customer fee to cover contribution costs.