Friday, August 26, 2011

Annual Phone Renewal

I renewed my VOIP phone plan (it's annual) for a seemingly low price... then got whomped with all sorts of taxes:

NY MCTD 186c: $1.27
Excise Tax: 5.33
Transit Tax: 0.78
Sales Tax: 16.56
FUSF (VoIP): 17.66
FCC Regulatory Fee (VoIP): 0.46
E911: 0.35

Now some explanation:

NY MCTD 186c: MTA tax for certain NYC-area counties
Excise Tax: This is a tax that originated in 1898 with the Spanish-American war. It was repealed and then reinstated in following wars, eventually becoming indefinite after WWII. A few years ago, it was eliminated for long-distance service, and now only applies to local service. Although it is a phone tax, the tax revenue doesn't go to fund anything telecom-specific.
Transit Tax: Used to fund transit projects in the service area. This is distinct from the MTA tax above.
Sales Tax: This seems high, sepcially since MCTD is calculated separately. I've opened an inquiry with my phone provider about it.
FUSF: "This surcharge is imposed for the purpose of providing telecommunications services at an affordable price to schools, libraries, rural health care providers, and low-income customers."
FCC Regulatory Fee (VoIP): The money to pay the regulators needs to come from somewhere!
E911: Another E911 recovery fee. Note that the E911 fee here is separate from the monthly cost recovery fee.

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