Taxes, Regulatory Fees, and Other Charges
Federal Universal Service Fund (FUSF) Fee:
The Federal Communications Commission (FCC) oversees the Federal Universal Service Fund (USF), which aims to facilitate access to telecommunications and broadband services for residents in rural and high-cost areas, low-income consumers, rural healthcare facilities, schools, and libraries. All telecommunications providers, as well as interconnected Voice over Internet Protocol (VoIP) providers like Zultys, are required to contribute to the USF. These companies may pass their contributions on to customers. The FCC reviews and adjusts the applicable USF contribution rates on a quarterly basis, and these rates are subject to change. Additional information to support these statements can be found on the FCC website:
State and Local Taxes:
State and Local Taxes constitute financial obligations mandated by multiple layers of government within a country to sustain essential public amenities and infrastructural projects. In the United States, ‘state taxes’ are levies established at the state level of governance, while ‘local and municipal taxes’ are administered by smaller governmental entities such as counties, cities, or towns. The revenue generated from these taxes is earmarked to support a diverse range of public services, including but not limited to, education, healthcare, law enforcement, and the transportation network.
911 Surcharges:
This is a financial charge levied by local governmental authorities to fund essential emergency response services. The fee is designed to support the infrastructure and operational costs associated with providing immediate assistance in crisis situations, including but not limited to fire suppression, medical emergency response, and search and rescue operations.
Cost Recovery Fee (CRF):
This fee helps cover costs that Zultys incurs in meeting its regulatory obligations. These obligations include but are not limited to, compliance with legal, regulatory, and administrative requirements at federal, state, and local levels, as well as the maintenance of our E911 systems. The associated expenses are as follows:
- Calculation and payment of Federal Universal Service Fees, along with other state and local fees and taxes.
- Compliance with regulatory requirements, such as accessibility, numbering, privacy, anti-fraud measures, caller ID authentication, dialing protocols, etc.
- Provisioning, maintenance, and protection of essential network facilities, services, and data centers to ensure smooth and reliable network operation.
- Expenses directly related to the provision of 911 and Enhanced 911 services.
- Certain administrative costs associated with providing these services.
The Cost Recovery Fee is not a government-mandated charge. It is calculated by taking the Customer’s total monthly user charges* and multiplying that sum by 12.38%
* User charges include the monthly recurring fees for the Standard, Premium, and Contact Center users as well as the corresponding MS Teams packages (Basic, ZAC, and ICC).