There are a number of surcharges and taxes assessed on telecommunications services by the State of California, city and county governments, and federal agencies. These taxes and surcharges are billed and collected by telecommunications carriers which then remit these funds as directed by the appropriate authorities.
A. CPUC Mandated Telecommunications All-End-User Surcharges
All carriers must report surcharges via Electronic Filing (EFRS)
Currently, there are six CPUC mandated telecommunications all-end-user surcharges supporting various public programs in California. The all-end-user surcharge rates vary from program to program and they are adjusted periodically based on the forecasted demand of the programs. The six all-end-user surcharges and their approved rates since January 1, 2000 are listed below. Access to the resolutions approving these surcharge rates can be found by clicking on the particular surcharge rates.
* DDTP: This surcharge appears on telephone bills as "CA Relay Service and Communications Devices Fund."
** CASF: Beginning on January 1, 2008, a surcharge rate of 0.25% was adopted to fund the CASF program. CASF surcharge revenues shall be held by the carrier in a memorandum account tracking system and the account will accrue monthly interest on the accumulated balance at the short-term commercial paper rate. Carriers shall continue to hold custody of all the collected CASF surcharge revenues and accumulated interest until the Commission provides further direction on the disposition of these revenues.
Carrier Remittance Worksheet to track CASF surcharges collected beginning January 1, 2008. Note: Your installed Excel program requires the activation of the Tools/Add-ins/Analysis Toolpak-VBA add-in feature in order for the automatic calculation to work properly.
The all-end-user surcharges are assessed on consumers' bills for intrastate telecommunications services except for the following:
- Universal Lifeline Telephone Service (ULTS) billings;
- Charges to other certificated carriers for services that are to be resold;
- Coin sent paid telephone calls (coin in box) and debit card calls;
- Customer-specific contracts effective before 9/15/94;
- Usage charges for coin-operated pay telephones;
- Directory advertising; and
- One-way radio paging.
The all-end-user surcharges are billed and collected by the telecommunications carriers. They, in turn, remit the surcharges as directed by the Commission.
B. PUC Reimbursement Account
A fee, annually established by the California Public Utilities Commission (CPUC or Commission), is levied on all telecommunications carriers (carriers) providing services directly to customers or subscribers within California. For more information, please click here: PUC User Fee
C. Emergency Telephone Users Surcharge Tax
This surcharge tax provides funding for Emergency Telephone Service (911) in California. Every provider providing intrastate telephone communications services in California and subject to the Commission's jurisdiction is required to register with the Board of Equalization. Questions about this surcharge tax and/or registration should be directed to the Board of Equalization, Excise Taxes Division, at 800-400-7115, or P.O. Box 942879, Sacramento, CA 94279-0056.
D. City and County Utility Taxes
Further information on local utility taxes and surcharges may be found at:
http://www.uutinfo.org/. Please note that neither the California Public Utilities Commission nor the Telecommunications Divsion of the California Public Utilities Commission guarantees or assures the accuracy of the tax/surcharge information presented at this link. This site is provided for general information only.
E. Federal Excise Tax
The Federal Excise Tax is administered by the Internal Revenue Service (IRS). Information about this tax can be found at: http://www.irs.gov/pub/irs-pdf/p510.pdf. Or, you may contact the IRS at the following address:
Internal Revenue Service
Excise Tax Branch
1111 Constitution Avenue
Washington, D.C. 20224