Last updated by Isabel M
Taxes and fees vary widely from state to state and county to county, so having an exhaustive list of taxes and fees that cover every potential or current Ting customer here isn't feasible. What we can give you is a break down of the line items that will come up on most bills along with some average taxation levels.
What you'll see on your bill
What you'll see in the taxes and fees section of your bill is what we're required to remit on behalf of our customers; nothing more.
Following is a rundown of the taxes and surcharges you can expect on your monthly Ting bill. We're using a monthly bill of about $30 as our benchmark, so if your bill is well below or well above that, then adjust accordingly.
How it looks on your bill: E911 Tax (Wireless) / E911 Tax
Most states and localities collect a flat rate on a per line basis for E911 services that range from about $0.50 - $3.00. If you see a second tax line item for E911 on your bill then you may live in an area where a further tax is levied on that flat rate fee. There may be variations in that flat rate within a state and certain jurisdictions levy other local emergency services fees.
On average Ting customers pay about $0.79 in E911 taxes per month overall.
Where the tax is not a flat rate, states levy it on a percentage basis.
FCC Regulatory Fee
How it looks on your bill: FCC Regulatory Fee (Wireless)
These fees help to cover the cost of the of the FCC's enforcement and policy-making work and all wireless providers are required to remit these funds. This will range from about $0.02 - $0.06 on the average Ting monthly bill.
Universal Service Fund (USF, USF Cellular)
How it looks on your bill: Fed USF Cellular / Fed Universal Service Fund / State Universal Service Fund
All carriers remit this fee and it helps to fund the following:
- subsidizing service for high-cost areas to keep them affordable
- supporting telecommunications services to schools, libraries, and hospitals, especially in rural areas
In addition to the federal fee, some states also levy a USF fee.
Along with sales tax (we'll get to that), this fee represents a fairly large portion of the tax/surcharges on a monthly Ting bill (around 30% of the total amount taxed in many cases) with an average cost of $1.03.
State and Local Taxes
States and local governments levy a range of other taxes and fees including:
- Telecommunications Sales Tax
- Sales Tax
- Statutory Gross Receipts (Wireless)
- License Tax
- Utility Users Tax
Generally speaking, the Telecommunications Sales Tax, Sales Tax, Statutory Gross Receipts are all taxes on monies received for carrier services. On the average Ting bill, they will come to $0.96, $1.28 and $1.00 respectively. While all of these can make up a fairly large portion of the tax/surcharges on a monthly bill (25-30% of the taxes and fees amount), the Telecommunications and Gross Receipts taxes are not widely levied.
Licence and Utility Users taxes are related to fees carriers remit for the use of utilities like cable, electricity, and others. Neither is widely levied but will, on average, come to $1.25 and $1.00 respectively. They will also average 20-25% of the taxes/surcharges on a bill where they appear.
This isn't an exhaustive list but does cover the most common taxes and fees you'll see on your bill in most states.
Certain states and local governments levy taxes and fees relating to specific public works or programs such as the Teleconnect Fund in California or the or Residential Service Protection Fund Surcharge in Oregon.
What you won't see on your bill
Administrative or Recovery fees. We don't add any taxes or fees over and above the ones levied by federal, state and local government.
What about tax exemption?
We do not have a system or program in place to process purchases that are exempt from tax collection and remittance. Ting customers that are 501(c)3 organizations or that are otherwise tax exempt will need to submit individual claims for their purchases through the standard reimbursement means required by their state or local government (for example, Form AU-11 in New York or Form CDTFA-101 in California).
What about the tax on purchases?
One question we get is "Why are you collecting sales tax on my online purchase?"
Good question. While we don't have physical stores in your state, we do provide services using the very physical infrastructure of our network provider in your state and thus we collect taxes on purchases.