Explanation of Taxes, Fees and Other Charges on Your Bill
Explanation of Taxes, Fees and Other Charges on Your Bill
Taxes, fees and other charges vary based on the products you purchase and your service location. These fees are separated into two sections on your bill:
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Taxes, Governmental Surcharges and Fees include sales, excise, other taxes, and government surcharges that Verizon 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.
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Verizon Surcharges and Other Charges and Credits are costs the law allows Verizon to pass on to its customers as a surcharge.
Access Recovery Charge (ARC)
This monthly Verizon 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 monthly Verizon surcharge is applied to each long distance customer and helps Verizon Long Distance and Verizon Enterprise Solutions defray a portion of its costs for calls terminated on other networks, fees paid to support government programs such as Telecommunications Relay Service and Local Number Portability, Other Federal Communication Commission-assessed charges, 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 Verizon 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
Government agencies require or authorize Verizon 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
Government agencies require Verizon to collect a 3% tax on local- only services, which are services not bundled with other services such as long distance service.
Federal Subscriber Line Charge
This monthly Verizon surcharge is authorized by the Federal Communications Commission which mandates that local telephone companies pay an access charge on each local telephone line to partially reimburse long distance companies for the cost of routing long distance calls to and from local customers. The charge is applied on a per line basis for residential and business customers.
Federal Universal Service Fund (FUSF) Charge
This monthly Verizon surcharge allows Verizon and Verizon Long Distance to recover from its customers the funds it pays to the Federal Communications Commission (FCC) on interstate services. 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
A local franchise authority may impose a financial obligation on Verizon to support public, educational and government programming channels in your local FiOS TV franchise area. Depending upon the specific provisions included in the local franchise agreement between your community and Verizon, the fee is either based on the percentage of FiOS TV revenue generated in your local franchise area, a per subscriber amount, or a lump sum payment. On your bill under Verizon Surcharges, you may see any one or all of the following fees: PEG Grant Fee, PEG Support Fee or Franchise Related Costs.
Long Distance Access Charge
Formerly named the Federal Access Charge, this monthly Verizon Long Distance surcharge to its long distance customers, helps defray the access costs charged to Verizon Enterprise Solutions and Verizon Long Distance (or its agents) by local telephone companies.
Miscellaneous surcharges and fees
Local government agencies require Verizon 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 Verizon surcharge recovers Verizon’s costs of using the municipal public right of way to provide telecommunications services. This fee is generally charged per telephone line.
PEG Grant Fee
A local franchise authority may impose a financial obligation on Verizon to support public, educational and government programming channels in your local FiOS TV franchise area. Depending upon the specific provisions included in the local franchise agreement between your community and Verizon, the fee is either based on the percentage of FiOS TV revenue generated in your local franchise area, a per subscriber amount, or a lump sum payment. On your bill under Verizon surcharges, you may see any one or all of the following fees: PEG Grant Fee, PEG Support Fee or Franchise Related Costs.
PEG Support Fee
A local franchise authority may impose a financial obligation on Verizon to support public, educational and government programming channels in your local FiOS TV franchise area. Depending upon the specific provisions included in the local franchise agreement between your community and Verizon, the fee is either based on the percentage of FiOS TV revenue generated in your local franchise area, a per subscriber amount, or a lump sum payment. On your bill under Verizon surcharges, you may see any one or all of the following fees: PEG Grant Fee, PEG Support Fee or Franchise Related Costs.
Regional Sports Network Fee
This monthly fee helps to cover the rising cost of delivering regional collegiate and professional sports programming in each local team's area. Verizon collects the fee on subscribers monthly bills under the Verizon Surcharges and Other Charges and Credits section.
Right of Way Fee/Municipal Franchise Fee
This monthly Verizon surcharge recovers Verizon's costs of using the municipal public right of way to provide telecommunications services. This fee is generally charged per telephone line.
State Infrastructure Maintenance Fee
This monthly Verizon surcharge recovers Verizon’s 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 Verizon 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 Verizon collects 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 Translation Privilege Tax
This monthly Verizon surcharge, recovers from customers the cost of the state tax on gross revenue paid by Verizon in Arizona.
Video Franchise Fee
The video franchise fee is paid to the local franchising authority. Your local franchise authority may require Verizon to pay a franchise fee of up to 5% of its FiOS TV gross revenues. Verizon collects the franchise fee from its customers under Verizon surcharges on subscribers’ monthly bills.
This monthly Verizon surcharge recovers from customers the cost of the state tax on gross revenue paid by Verizon in Arizona.
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Taxes, Governmental Surcharges and Fees include sales, excise, other taxes, and government surcharges that Verizon 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.
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Verizon Surcharges and Other Charges and Credits are costs the law allows Verizon to pass on to its customers as a surcharge.
See also:
Related Charges and Taxes topics
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