Why Have the Taxes and Fees Changed?
As a result of the TDS acquisition of TDS, the taxes and fees that apply to service were reviewed to ensure regulatory compliance. During that review, many adjustments were necessary, for a variety of reasons including that TDS is no longer municipally owned.
Some fees will no longer apply and have been removed: the Franchise Fee and the Relay Service Fee.
Other fees are being assessed differently: the Federal Excise tax will apply only to local telephone service and calling features, rather than also applying to long distance. The state tax and the sales and use tax are being modified to comply with state regulations.
Other fees are being increased. the E911 fee is increasing five cents.
Explanation of Taxes and Fees:
TDS products, services, and equipment are subject to required Federal, State, and Municipal taxes and fees, which may change as required by law. In addition, some fees are assessed by TDS to support infrastructure improvements or defray costs of doing business. Here’s an explanation of the taxes and fees that may be listed on a customer’s bill:
Local Broadcast Fee: reflects the fees broadcasters require TDS to pay for permission to carry their signals. This fee is applied to cable TV service.
E911 Fee: funds for the operation of 911 local emergency services. It is billed on behalf of the state. The fee is applied per access line.
Federal Excise Tax: a permanent tax that goes into the country’s general revenue fund. It’s assessed on local phone service and calling features.
State Tax: North Carolina requires this tax, which is generally imposed on services.
Sales and Use Tax: State and county sales taxes, generally imposed on equipment including installation.
Universal Service Fund Federal (USF), which helps ensure that all consumers have access to telecommunications services (including Internet) at reasonable rates.
If you have any questions, please contact our customer care group at 704-660-3840.
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