Fusion Phone taxes and fees

A variety of local, state and federal items are included on your Cruzio bill for Fusion Phone service. Read on for explanations of each surcharge, or view the current surcharge rates at the CPUC.

California Lifeline Telephone Service Surcharge

California LifeLine was established by the California Public Utilities Commission in compliance with Public Utilities Code 871, providing discounted basic residential (landline) telephone services to low-income households.

Read more about Lifeline Telephone Service at the CPUC…

California Deaf and Disabled Telecom Program Surcharge

The PUC, in compliance with Public Utilities Code 2881, implemented three telecommunications programs for California residents who are deaf, hearing impaired and/or disabled. These three programs are collectively known as the Deaf and Disabled Telecommunications Program (DDTP).

Read more about the California Deaf and Disabled Telecom Program at the CPUC…

California High Cost Fund-A Surcharge

The California High Cost Fund-A (CHCF-A) was implemented in accordance with Public Utilities Code 739.3. It provides a source of supplemental revenues to 14 small Local Exchange Carriers (LECs) for the purpose of minimizing any rate disparity in basic telephone services between rural and metropolitan areas.

Read more about the California High Cost Fund-A at the CPUC…

California High Cost Fund-B Surcharge

The California High Cost Fund-B (CHCF-B) was implemented in accordance with Public Utilities Code 739.3. It provides subsidies to Carriers of Last Resort (COLRs) for providing basic local telephone service to residential customers in high-cost areas that are currently served by Pacific Bell Telephone Company dba AT&T California, Verizon California Inc., Citizens Telecommunications Company of California dba Frontier Communications of California, and Cox Communications. The purpose of the subsidies is to keep basic telephone service affordable and to meet the Commission’s universal service goal.

Read more about the California High Cost Fund-B at the CPUC…

California Teleconnect Fund Surcharge

Making telecommunications services affordable for schools, libraries, and others, the California Teleconnect Fund (CTF) Program was established by Decision 96-10-066 on October 25, 1996. In this decision, the Commission reaffirmed its commitment to universal service, and in accordance with state and federal directives, created the CTF program to provide 50% discount on selected telecommunications services to qualifying schools, libraries, government-owned and operated hospitals and health clinics, and community based organizations. The program is funded through a surcharge on all end-users of intrastate telecommunications services.

Read more about the California Teleconnect Fund, at the CPUC …

California Advanced Services Fund Surcharge

The California Advanced Services Fund (CASF) was authorized by the Commission on December 20, 2007, in D.07-12-054 in accordance with Public Utilities Code 701. It provides grants to “telephone corporations” as defined under Public Utilities Code 234.

The total allocation for the CASF is $100 million. An expected two-year program, the CASF will promote universal service in unserved and underserved areas in the state by awarding funding to qualifying certificated applicant carriers. The funding will be used for projects that will a) provide broadband services to areas currently without broadband access and b) build out facilities in underserved areas if funds are still available. Funds shall be collected using an all-end-user surcharge billed and collected by telecommunications carriers.

Read more about the California Advanced Services Fund at the CPUC…

California 911 Emergency Telephone Users Surcharge

The California Board of Equalization administers the Emergency Telephone Users Surcharge Law. The surcharge is imposed on amounts paid by every person in the state for intrastate telephone communication service. The service supplier (or billing aggregator authorized by a service supplier) shall collect the surcharge from each service user and remit to the state the amount of the surcharge.

Read more about the California Emergency Telephone Users surcharge at the California Board of Equalization…

California Public Utility Commission User Fee

The California PUC User Fee is established by the California Public Utilities Commission. Revenues collected from this fee fund the annual budget of the Commission for regulating telecommunications utilities. Commission determines annually the appropriate CPUC fee to be paid by the telecommunications carriers. This fee is based on the telecommunications carrier’s gross intrastate revenue excluding inter-carrier sales, equipment sales and directory advertising. The purpose of this fee is to finance the Commission’s annual operating budget.

Read more about the California PUC User Fee at the CPUC…

Federal Universal Service Fund (FUSF)

What is the Federal Universal Service Fund (FUSF)?

The following explanation of the USF is taken verbatim from the FCC:

Because telephones provide a vital link to emergency services, to government services and to surrounding communities, it has been our nation’s policy to promote telephone service to all households since this service began in the 1930s. The USF helps to make phone service affordable and available to all Americans, including consumers with low incomes, those living in areas where the costs of providing telephone service is high, schools and libraries and rural health care providers. Congress has mandated that all telephone companies providing interstate service must contribute to the USF. Although not required to do so by the government, many carriers choose to pass their contribution costs on to their customers in the form of a line item, often called the “Federal Universal Service Fee” or “Universal Connectivity Fee.”

The current incarnation of the FUSF was introduced into tax law created by United States Congress, via the FCC in 1998. Title 47, Code of Federal Regulations, Sections 36, 54, and 69.

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. The tax is a percentage of the interstate portion of the long distance charge on your bill. The surcharge is assessed to all telecommunications companies with interstate operations, including long distance carriers, wireless companies, pager companies and payphone companies. The Federal Communications Commission (FCC) regulates this surcharge.

This surcharge appears by many names. The following are some ways in which the FUSF charges may be represented on bills from other companies, including your local and long distance telephone carriers:

  • Federal Universal Service Fee
  • Federal Universal Service Fund
  • Federal USF – ADSL
  • FED USF – Special Access
  • Universal Connectivity Charge
  • Universal Service Carrier Charge

Where can I get more information about the FUSF?

The FCC is the best resource for information about the particulars of the FUSF, and a good place to find information regarding the telecommunications industry in general.

Federal Subscriber Line Charge

The Subscriber Line Charge is a fee paid to the local phone company that connects you to the telephone network. Local telephone companies recover some of the costs of telephone lines connected to homes or businesses through this monthly charge on your local telephone bill. Sometimes called the federal subscriber line charge, this fee is regulated and capped by the FCC, not by state Public Utility Commissions.

Read more about the Federal Subscriber Line Charge at the FCC…

Federal Interstate Telecommunications Service Provider (ITSP) Fee

As set forth in 47 U.S.C. 159(a), the Commission is required by Congress to collect regulatory fees to recover the regulatory costs associated with its enforcement, policy and rulemaking, user information, and international activities. Licensees and regulatees are assessed fees calculated as set forth in (See Assessment and Collection of Regulatory Fees for Fiscal Year 2010, Report and Order, 75 FR 41932 at 1 (July 19, 2010) (“FY 2010 Regulatory Fees Report and Order”)).

Read more about the Federal Interstate Telecommunications Service Provider (ITSP) Fee at the FCC…

Local Utility Users Tax

Local telephone taxes are charged by many municipalities. These are voter approved taxes which utility providers are obligated to collect and remit to your city. For specific rates for your city, the UUTInfo website provides a helpful reference. You can also contact your city’s finance department.

Look up your city’s rates at UUTInfo…

Regulatory Recovery Surcharge

A Regulatory Recovery Surcharge is assessed on all base voice charges excluding other taxes and surcharges, to cover costs associated with payment of government imposed fees and to recover the costs of compliance with all government imposed regulatory requirements. It may include costs incurred in prior years that are not yet fully recovered. It is not a tax or charge which the government requires us to collect from its customers. This charge is subject to change from time to time as the cost of regulatory compliance changes.

Property Tax Allotment Surcharge

A property tax allotment surcharge (PTA) is applied to all base voice charges excluding other taxes and surcharges. This is not a tax, but a cost recovery mechanism meant to recover the cost of state-assessed property taxes on telecommunications equipment located in our service areas.

Read more about State-assessed property taxes at the California Board of Equalization website…