Taxes and Fees on Verizon Bill

Groz

Hi, I know that we've always had many taxes and fees with regards to to Verizon phone service, but having just switched to FIOS, I was wondering why there are so many taxes and fees. With my triple bundle, I'm paying over $31 a month in taxes and fees. This is my second bill from Verizon for my triple bundle.

When I had directv for 13 years, the only tax I had was .77 cents on one leased receiver(I owned the other 5 receivers) and no other taxes. Why are there taxes on Verizon FIOS, yet not on Directv?

Below is a copy of the both my FIOS taxes and fees and my Verizon taxes and fees for today's bill. If anyone knows what a "Video Franchise Fee" is for $11.91, please let me know. Thanks, Groz

FIOS
Tax & FeesState tax $5.60
Video Franchise Fee $11.91
CATV Universal Access Fund $1.70

Total Tax & Fees $19.21

Tax & FeesFederal excise tax $0.19
Federal excise tax # $0.16
State tax $0.49
State tax # $0.38
State tax ## $2.08
911 Tax $0.90
Federal Subscriber Line Charge $6.29
Federal Universal Service Fee $0.71
Federal Universal Service Fee - LD $0.74

Total Tax & Fees $11.94

As you can see, there are over $31 in taxes and fees.

Thanks,
Groz

PJL2

DirecTV does not charge local taxes. Like your local cable company, Verizon is required to charges these taxes. If you don't like them, complain to your local and state government. They mandate the taxes.

djmattyb

That's not entirely true. What is true is that Verizon has to pay these taxes and fees to the government and so they pass along those costs to the consumer. The don't have to, they could just eat the cost, but that would be bad for business.

Scottnot

That may not be entirely true either.
I believe that they are required by law to itemize taxes, fees, etc.; the only two items I can think of that do not "add" taxes on top of their advertised prices are gasoline and theater tickets.

jmcohen23

those taxes are based primarily on the variables set in your state, as well as the options you have on your account (e.g. premium channels, HD, etc)

below are my taxes/fees (maryland)
Voice
Federal Excise Tax $0.20
MD Local Tax $2.12
MD Federal Universal Service Fund Surcharge $0.64
Gross Receipts Tax - Long Distance $0.40
Federal Universal Service Fund Surcharge Long Distance $0.27
MD 911 Fee $1.00
Telecommunications Access of MD Fee $0.20
Gross Receipts Tax - Long Distance -$0.33
MD Gross Receipts Tax Surcharge $0.54

Federal Subscriber Line Charge $5.68

TV
State Sales Tax $1.32
Video Franchise Fee $4.62
Surcharge $0.66

Total: $17.32 (nearly half of yours)

Simply call VZ and ask them to explain each tax/fee to you

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JPL

As others have said, Verizon is required to pay fees the DirecTV doesn't. Some are federal fees (for phone service). Some are local (additional phone charges, sales taxes, and franchise fees). They really vary by state. It looks like (at $11.94) you have a really hefty franchise fee in your state.

For the record, some states are starting to charge 'franchise fees' to DBS companies (like DirecTV). Don't know how they justify it, since franchise fees are designed to pay for things like use of utility poles for carrying service. But politicians won't be deterred from taking your money, so in states with a large DBS penetration, the legislatures get real creative in taxing you.

Some of those fees you can't do much about - but it certainly doesn't hurt to contact your local government to vocalize your displeasure at their consficatory taxes/fees. You may not get anywhere, but that's definitely the place to start.

MarvKirsch

Taxes, Fees and Other Charges $18.57

Voice:
Federal Excise Tax $0.19
State Tax $2.62
Surcharge(s) $1.01
911 Surcharge $0.35
Federal Universal Service Fund Charge $0.84
Federal Universal Service Fund - Long Distance $0.86
FCC Line Charge $6.42

TV:
State sales tax $0.92
County sales tax $0.98
Dist sales tax $0.09
Surcharge(s) $4.29

This is from my $281.80 bill, FIOS + Wireless and there are about $21 worth of these extra charges on the wireless side, so I am looking at around $40 in extra fees...thanks for reminding me

Groz

I just realized that I had not put in my original post that I live in NJ.

Thanks,
Groz

cookiemunster

WOW jmcohen23. Where do you stay in MD?! I live in MD as well (Temple Hills, PG County). How is mine so much higher than yours?! I am paying $34.84 a month in fees, double what you pay. Crazy! Also I have the triple play bundle, do you?

Taxes, Governmental Surcharges and Fees. Federal Excise Tax .20
MD Local Excise Tax 2.40
MD State Sales Tax 6.00
MD 911 Fee 1.00
Telecommunications Access of MD Fee .18
Total 9.78

Verizon Surcharges and Other Charges and Credits. Federal Subscriber Line Charge 5.64
Federal Universal Service Fund 1.88
MD Gross Receipts Tax Surcharge .77
PEG Grant Fee 6.52
Video Franchise Fee 10.25
Total 25.06

ITALIAN926

Two big discrepancies in bill comparison could be someone having FiOS digital Voice or a FIOS POTS line. The POTS line is more heavily taxed. Ive been told they have started up conversions for people that want to switch, I dont know how true that is. Conversions were stopped for quite a while due to billing problems.

The next biggest thing is the Video franchise Fee. This will vary from town to town, if you feel its too high, I guess you can complain to your local government.

Also, as far as sales taxes and such, this is for the total bill. So comparing a bill to someone who has every TV channel when you have the basics, isnt a true comparison.

Melba86ss

yes it is ,Some products didn't expect so well

DoctorCAD

Well there's your problem right there!

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zip2play

Taxes, Fee, and Other Charges run me 9% of my total bill (in Manhattan.)

teddymines

There are basically 3 ways to avoid paying those taxes and fees.

1. Lobby with local, state, and federal governments.

2. Talk with the company and urge them to not charge their fees.

3. Do not conduct business with those companies.

Scottnot

Interesting line of thinking . . . .

Item #1.: Absolutely this is something that could be done, and may actually have a positive result.

Item #s 2. and 3. are highly impractical if not just plain silly:
Item #2.; it's the law, they MUST charge these fees.
Item #3.; equally silly, any business offering the service MUST charge the fees, so the option would to forgo ANY cable service.

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