TPx Taxes and Other Charges

Government Fees, Taxes and Other Charges

In addition to the rates and charges pertaining to TelePacific services described herein, certain Fees, Taxes and Other Charges (Charges) apply. Such Charges are calculated based upon the amount billed to the customer for TelePacific services. The Charges are described below.

Government Fees and Taxes

1. 911 Tax in California is a surcharge set annually by the California Department of General Services and collected by suppliers of intrastate telecommunications services to support California’s public safety answering points (PSAPs) and is remitted directly to California Board of Equalization.In Texas, this is called a 9-1-1 Emergency Service Fee and is set by various Texas emergency services agencies and remitted directly to each entity or to the Texas Comptroller of Public Accounts, as appropriate.
2. 911 Equalization Surcharge is imposed by the Texas 9-1-1 Advisory Commission on each customer that is receiving intrastate long-distance service. The surcharge generates additional funds for underfunded regions.
3. California Advanced Services Fund (CASF) provides grants to telecom companies to promote universal service by funding qualified carrier projects that will provide broadband services in un-served and underserved areas and build out facilities in underserved areas, if funding is available. CASF is funded by a surcharge on revenues of telecom carriers which is collected by carriers from end-users of intrastate telecommunications services. The current fee can be found at http://www.cpuc.ca.gov/casf.
4. California High Cost Fund A Surcharge provides revenues to small local LECs to minimize rate disparity of basic telephone services between rural and metropolitan areas and is remitted directly to the CPUC
5. California High Cost Fund B Surcharge provides service to residential customers in high cost areas. The purpose is to keep basic telephone service affordable and to meet the CPUC goal of universal service and is remitted directly to the CPUC.
6. California Teleconnect Fund Surcharge enhances universal service by providing discounted telecommunications services to qualified schools, libraries, government-owned and operated hospitals and clinics, and community based organizations. The program is funded by a surcharge on all end-users of intrastate telecommunications services and is remitted directly to the CPUC.
7. Communication Users Tax represents a tax imposed by the City of Los Angeles on telecommunications utilities in its jurisdiction, which is passed through to customers in the City of Los Angeles.
8. District Tax is a tax imposed in Texas by special districts such as rapid transit authorities, school districts or development zones on sales within their districts.
9. Federal Excise Tax is a tax imposed on local telephone service and associated equipment and is remitted directly to the Internal Revenue Service. The current rate can be found at https://www.irs.gov/publications/p510/ch04.html.
10. Texas Municipal Right of Way (ROW) Charge is a fee required by the Texas PUC to compensate municipalities for the use of public right-of-way within the municipality. The charge is set annually by the Texas PUC and varies by municipality and type of customer.
11. PUC Tax (Fees) in California helps to finance the CPUC operating budget. This fee is based on a carrier’s gross intrastate revenue and is remitted directly to the CPUC.In Texas, this fee is called a Public Utility Gross Receipts Tax. Revenues go to the Texas PUC, the Office of Public Utility Counsel and also to the Texas General Revenue Fund.
12. Relay Service Communications Device Fund (DEAF)¹ provides telecommunications devices to the deaf or hearing impaired. It also provides California Relay Service (CRS) and has been expanded to serve individual Californians with hearing, vision, speech, cognitive and mobility disabilities. Monies collected are remitted directly to a financial institution, as directed by the CPUC
13. Sales tax is paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is calculated by applying a percentage rate to the taxable price of a sale. Sales taxes are collected from the buyer by the seller, who remits the tax to a government agency.
14. Statutory Gross Receipts Tax is a fee set by a local government entity such as a city or county for the privilege of operating a telecommunications service in that jurisdiction. The fee is remitted directly to the treasurer of the local government entity entitled to collect the fee.
15. Utility Users Tax² represents a tax or surcharge imposed by a city or county on utilities in their jurisdictions, which is passed through to customers in those jurisdictions.
16. Wireless 911 is a surcharge set annually by the California Department of General Services and collected by suppliers of intrastate telecommunications services to support California’s public safety answering points (PSAPs) and is remitted directly to California Board of Equalization.
17. Wireless Utility Users Tax represents a tax or surcharge imposed by a city or county on utilities in their jurisdictions, which is passed through to customers in those jurisdictions.
18. Telephone Sales Tax is a tax specifically imposed on telecommunication services. This is different and separate from the standard sales tax, which applies to goods and services.  Many states also impose their standard sales tax to telecommunication services in lieu of a telephone sales tax.  Only one type of sales tax is imposed per telecommunications services transactions, either telephone sales tax or standard sales tax, not both.

Other Charges

1. Carrier Access Charge (CAC). The monthly recurring charge applies to each line, trunk, or channel with an opportunity to presubscribe and/or complete long distance calls. The charge is applicable whether or not a long distance call is made. CAC is $0.43 per Centrex line, $0.53 per line and $2.60 per trunk. Only one CAC applies per presubscribed line, trunk, or channel.
2. Carrier Cost Recovery Fee. This fee is equal to 2.3647% of all eligible telecommunications and interconnected VoIP monthly service charges. This fee helps TPx recover costs associated with administrative fees and expenditures related to compliance with Federal regulatory programs and obligations, including, but not limited to, the Telecommunications Relay Services (TRS) for the speech and hearing-impaired. The percentage fee will be adjusted quarterly based on then-current costs.

3. End User Common Line Charge (EUCL)^4. EUCL is a monthly fee that a customer pays to be connected to the telephone network. This is not a government fee or tax but a charge for use of the telecom company’s local and toll network.

   Legacy TelePacific	Territory
   	CA – AT&T	CA – Verizon	CA – Surewest/Frontier	Nevada	TX – AT&T	TX – Verizon
   Per line	$4.63	$7.50	$9.20	$4.80	$4.63	$7.50
   Per SuperTrunk	$111.12	$180.00	$220.80	$115.20	$111.12	$180.00
   Per Voice Only PRI	$23.15	$37.50	$46.00	$38.20	$23.15	$37.50

   Legacy Mpower	Territory
   	CA – AT&T	CA – Verizon	Nevada
   Single Business Line	$6.01	$6.00	$4.28
   Multiple Business Lines	$6.01	$7.57	$5.51
   Payphone Lines	$6.01	$7.57	$5.51
   Integrated/Measured Lines	$6.01	$7.57	$5.51
   Trunks (including PRI)	$35.01	$37.85	$27.55
   First Residential Line	$6.01	$6.00	$4.28
   Additional Residential Line	$6.01	$7.00	$4.74

4. End User Connection Charge (EUCC). EUCC is a monthly fee applied to customers of IP-enabled voices services including OnePac, SmartVoice, and UCx. It recovers the cost of allowing the customer to make and receive toll and long distance calls (regardless of the facilities used to connect the customer to the Company switch). This is not a government fee or tax but a charge for use of the telecom company’s switch and interstate network. The monthly recurring charge of $2.37 applies to each voice path or voice line.
5. Federal Universal Service Fund Fee. The monthly fee will be the FCC quarterly Universal Service Contribution Factor converted to a percentage and applied to all interstate and international services, including information services (data and internet services) which are provided over Special Access DS1 or DS3s. The current rate can be found at https://www.fcc.gov/general/contribution-factor-quarterly-filings-universal-service-fund-usf-management-support and is recalculated quarterly by the FCC.
6. Local Number Portability Fee. LNP is a fee assessed to recover costs of compliance to allow customers to retain their telephone numbers when changing local providers. The LNP charge is not subject to any discounting and does not contribute to any monthly minimum usage guarantees.
   LNP is $0.39 per line or $1.95 per trunk per month. SmartVoice and UCx services are excluded from LNP. This charge will be adjusted quarterly to reflect the then current cost for maintenance of this capability.
7. Long Distance Access Charge. The monthly recurring charge of $4.00 applies to each line, trunk, or channel that is presubscribed to the Company’s Long Distance Service. For services such as SuperTrunk, a Long Distance Access Charge will apply to each presubscribed channel of the 24 channel service. The charge is applicable whether or not a long distance call is made. Only one Long Distance Access Charge applies per presubscribed line, trunk, or channel.
8. Non-ILEC Switching Fee. This is a charge on wholesale POTS lines to cover the costs TelePacific pays to ILECs for tandem switching for non-ILEC transit traffic.
9. NV Universal Service Fund Fee. This fee provides for the availability of affordable and reliable basic service to persons with low income and persons in rural, insular and high cost areas, which is paid to the universal service fund administrator, solely, for deposit into the fund.
10. Regulatory Cost Recovery Fee. This monthly charge is assessed on residential end-user customers on a per line basis that helps to recover the costs associated with network connection charges, property taxes and the expenses of regulatory proceedings and compliance.
11. San Diego Underground Conversion Fee. A fee that allows for the recovery of costs associated with the burial of aerial facilities within the City of San Diego city limits. The fee applies to customers in San Diego and is $1.99 per POTS line (provided by 2 wire loop). Lines delivered over T1 will not incur the fee. California Lifeline customers are exempt from the fee.
12. State Universal Service Fund Fee³ in California is a fee to support discounted basic (landline) telephone services to eligible California households. The fee is a percentage of all billed MRCs and pro-rated recurring charges, all billed usage charges including local, intraLATA toll and intrastate and Directory Assistance calls. The current rate can be found at http://www.cpuc.ca.gov/general.aspx?id=3789.In Texas, this fee supports affordable services to high-cost rural customers, funds the Relay Texas and specialized assistance programs for the hearing disabled and funds discounts to low-income customers. It is imposed on all telecommunications services including wireless, local and long distance but is not imposed on tax-exempt entities such as schools and universities. The fee is a percentage of all billed intrastate charges. The current rate can be found at https://www.puc.texas.gov/consumer/phone/Taxes.aspx#tusf.¹Legacy Mpower invoice title is CA Relay Serv & Comm Device
    ²Legacy Mpower invoice title is Local Utility User Tax
    ³Legacy Mpower invoice title is Universal Lifeline Service Fee
    ⁴The End User Common Line Charge is also called a Subscriber Line Charge in some states