Government Taxes, Fees and Surcharges

You may be subject to various Taxes, fees, surcharges, and other charges vary based on the products you purchase and your service location. Taxes, Governmental Surcharges and Fees include sales, excise, other taxes, and government surcharges that Carolina Digital Phone Inc is required by law to collect from customers on behalf of local, state, and the federal government. These taxes, surcharges and fees may change from time to time without notice. Carolina Digital Phone Inc Surcharges and Other Charges and Credits are costs the law allows Carolina Digital Phone Inc to pass on to its customers as a surcharge.

  • 911 Emergency Service Fee – This is a fee that we are required or authorized by government agencies to collect from customers. The government agencies use the funds collected to cover the costs of providing 911 emergency response. The fee is generally either an amount per telephone access line or a percentage of revenue.
  • Access Recovery Charge (ARC) – This monthly surcharge is applied on a per line basis and is related to the Federal Intercarrier Compensation Rules, which set the rates charged between carriers for telecommunications traffic. *The ARC is not charged to Lifeline customers*
  • Carrier Cost Recovery Charge –  This fee is a monthly surcharge telecommunications carriers, we are permitted to assess in order to defray the following:
    • a portion of the costs to terminate calls on other networks,
    • fees paid to support government programs such as Telecommunications Relay Service and Local Number Portability,
    • other charges assessed by the FCC, and
    • additional indirect costs associated with administering and complying with government programs.
  • Dual Party Relay Service/Telecommunications Relay Service – Authorized by the state government, the state uses the funds collected by us to provide telecommunications services for those with special needs. The fee is calculated on either a percent of revenue or on a per telephone line basis.
  • Emergency Service Fee for 911 / 911 Surcharge –  Government agencies require or authorize us to collect funds to cover the costs of providing 911 emergency responses. The fee is based on either a percentage of revenue or charged per telephone line.
  • Federal Excise Tax
  • Federal Subscriber Line Charge
  • Federal Tax
  • Federal Universal Service Fund (FUSF) Charge – This monthly surcharge allows us e to recover from its customers the funds it pays to the Federal Communications Commission (FCC) on interstate services to support the FCC’s universal service programs. The FCC regulates this charge; reviewing and adjusting the fee quarterly based on the FCC’s quarterly FUSF contribution factor.  The FCC uses the fund to help keep local telephone rates affordable for all customers, support telecommunications services in schools, public libraries, and rural health-care facilities and subsidize local service to high-cost areas and low-income customers. *This charge does not apply to Lifeline customers*
  • Franchise Related Cost
  • Long Distance Access Charge – Formerly named the Federal Access Charge, this monthly surcharge is assessed to long distance customers to help defray the access costs charged to us (or its agents) by local telephone companies.
  • Long Distance Administrative Charge –  This monthly line charge helps defray account servicing costs associated with providing state to state and international services. This surcharge is applied by us and is not a tax or fee assessed by a government agency.
  • Miscellaneous surcharges and fees –  Local government agencies require us to collect funds for different purposes, such as burying cable (MA Buried Cable Surcharge) or funding transportation (NY Metropolitan Transit Authority Surcharge). The amount varies by state and surcharge.
  • Municipal Franchise Fee/Right of Way Fee – This monthly surcharge recovers our costs where a jurisdiction charges us for the use of the municipal public right of way to provide telecommunications services. This fee is generally charged per telephone line and may be referred to on your bill as a Municipal Franchise Fee, Right of Way Fee or State Infrastructure and Maintenance Fee.
  • NY Municipal Construction Surcharge – The NY Municipal Construction Surcharge recovers a portion of the expenses we incur for relocation of its facilities that are in the public rights-of-way to prevent interference with street repairs, public construction projects or other activities required for public health, safety or convenience. The charge is reflected in the Carolina Digital Phone Surcharges and Other Charges & Credits section of the bill.
  • Right of Way Fee/Municipal Franchise Fee – This monthly surcharge recovers our costs where a jurisdiction charges us for the use of the municipal public right of way to provide telecommunications services. This fee is generally charged per telephone line and may be referred to on your bill as a Municipal Franchise Fee, Right of Way Fee or State Infrastructure and Maintenance Fee.
  • State Infrastructure Maintenance Fee – This monthly surcharge recovers our costs of using the public right of way in the State of Illinois. The fee is charged per telephone line.
  • State and Local Sales Tax/Local Communications Services Tax – Government agencies impose and we collects taxes from purchasers of specified products and services. These taxes include state, county and city sales taxes as well as taxes collected by Special Purpose District Agencies and Mass Transit Agencies (MTA). The products subject to tax and the amount of the tax varies by area.
  • State Sales Tax – Government agencies impose and we collect taxes on behalf of state governments from purchasers of products and services. The products subject to tax and the amount of the tax varies by area.
  • State Procurement Service Fees
  • State Transaction Privilege Tax – This monthly surcharge, recovers from customers the cost of the state tax on gross revenue paid by us in Arizona.
  • State Utility Gross Receipts Tax Surcharge/Telecom Services Excise Tax
  • State Utility Gross Receipts Tax Surcharge/Telecom Services Excise Tax
  • State Universal Service Fee – This fee is a monthly surcharge billed to customers to recover the State Universal Service fee paid by us to States on applicable services. Each state program is different, and depending on the state, the funds are used to:
    • help keep local telecommunications rates affordable for all customers,
    • support telecommunications services in schools, public libraries, and rural health-care facilities, and
    • subsidize local service to high-cost areas and low-income customers.
  • Telecommunications Relay Service/Dual Party Relay Service
  • Telecom Services Excise Tax/State Utility Gross Receipts Tax Surcharge
  • US Educational Technology Purchasing Alliance Service Fees