Understand taxes and surcharges on your bill

Updated 4/22/2016 1:12:37 PM by Comcast Expert
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Introduction

Your Comcast Business billing statement may include various taxes, surcharges and fees—get an explanation of them here.

Common taxes, surcharges and fees

Name Service Calculation/Basis Definition
Regulatory Recovery Fee Voice

This fee includes components that may be calculated based on access lines, subscribers, or percentage of applicable charges. The amount may vary each month.

This fee helps to defray regulatory costs incurred in complying with obligations and charges imposed by state commissions or municipalities to fund state universal service programs, relay services for the visually/hearing impaired and state and local utility fees. This is not a tax or government mandated fee. View the components for this fee in the applicable Price List.
Universal Connectivity Charge (In Texas, this is the Fed. Universal Service Fee) Voice This fee is calculated by applying the rate supplied by the Federal Communications Commission (FCC) on a quarterly basis to interstate and international revenues. This fee recovers the company's contribution to the Federal Universal Service Fund, which ensures the availability of affordable communications services to low-income and rural customers as well as eligible schools, libraries and healthcare providers. View the quarterly rate change online. This is not a tax or government-mandated fee.
State and Local 911 Fees Voice This surcharge may be calculated per access line, per telephone number, per account, or as a percentage of applicable charges. The amount may vary each month.

These charges are imposed by state and/or local governments to support the emergency response system for fire and rescue. The fee is generally owed to the state or local government by the subscriber and Comcast acts as a collection and remittance agent.

Federal Excise Tax Voice The rate is applied to local service billed separately from long distance service. This is a tax imposed on local telephone service by the federal government.
State and Local Sales Taxes Voice, Video, and Internet Percentage of applicable charges. The rate for sales taxes varies by state and/or locality. The tax is owed to the state or local government generally by the subscriber and Comcast acts as a collection and remittance agent.
Gross Receipts Taxes and State and Local Utility Taxes Voice and Video Percentage of applicable charges. The rate for these taxes varies by state and/or locality. These taxes are levied on Comcast and service providers are permitted to pass them on to consumers as a line item on the bill.
State and Local Communications Services Tax Voice, Video, and Internet Percentage of applicable charges. The rate varies by state and/or locality. This tax is collected by Comcast and it is remitted to the state.
FCC User Fee or FCC Regulatory Fee Video Monthly fee based on per subscriber amount. This amount may vary by $0.01 each month in accordance with FCC rules. Fees collected annually by the FCC from cable operators to reimburse the FCC for administering its regulatory responsibilities under the Communications Act of 1934. FCC rules permit cable operators to recover the regulatory fees from cable subscribers in twelve monthly installments.
Franchise Fees Video Percentage of applicable charges. Franchise fees are paid to local franchising authorities (municipalities) as compensation for the cable company's use of the public right-of-ways or easements. A franchising authority is the municipality that gives permission to the cable company to use a street or area along residential property, where telephone or electric poles are located.
PEG Fees Video Monthly fee or percentage of applicable charges. PEG stands for public, educational, and governmental. A local franchise authority may require that a cable operator provide channels for public, education, and / or government access. The LFA may require the cable operator to provide funds for equipment for local studios for these channels and operating funds to cover the expenses of operating the studios.
Franchise Related Costs or FRC Fees Video Monthly fee or percentage of applicable charges. Franchise Related Costs are costs associated with providing public, educational, and/or government access facilities and equipment and/or other related costs with the local franchise area.

Note: This is not a comprehensive list of all taxes and fees that may be found on your bill.

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