Taxes and Fees on Bills

911 Service Fee:

ACD and all other telecommunications companies collect 911 service fees that are paid to the local 911 agency. The governmental entities are supposed to use these fees solely for operating 911 service for the lines. The rate that ACD charges is the same rate that the governmental entities charge without mark up.

State of Michigan service fees and other information are located here: http://www.michigan.gov/msp/0,4643,7-123-1593_47748_47753---,00.html

Universal service fund fees: This fee is tied to any service that is deemed to be long-distance as defined by the government. This rate varies based upon the rate defined by the FCC. ACD charges this fee and remunerates these funds to the federal government without markup. The USF fee is supposed to be used by the government to subdize access in high cost areas, and for subsidized services for certain schools, hospitals, and libraries and other service set by the universal service. Long-Distance service is defined as inter-lata service, such as long distance phone calls, circuits that cross state or interlata borders. These rates are always separated out and billed to the customer for additional service fees.

The following link lists the FCC rates for universal service fund. http://www.fcc.gov/encyclopedia/contribution-factor-quarterly-filings-universal-service-fund-usf-management-support

Regulatory Recovery Fees: These fees are typically charged on interstate service, i.e. service that goes across state lines. The FCC has defined the contribution factors here: http://www.fcc.gov/regfees. Also certain states also charge regulatory recovery fees. These fees are the cost for the federal government and / or state government to cover the cost of regulating services on behalf of the industry.