Billing Definitions: Taxes, Surcharges, and Fees
In accordance with your Service Agreement, and in addition to standard service charges billed for Lightcore Technology Solutions, LLC (“LTS”) services, taxes, surcharges, fees, and other charges may apply. These charges vary based on factors such as the type of service and geographic location.
Certain items may appear as separate line items on your invoice. The following are examples (not exhaustive). This information is provided for informational purposes only and may be updated from time to time.
Federal Taxes and Surcharges
Federal Universal Service Fund (FUSF)
The Telecommunications Act of 1996 requires LTS to contribute to the Federal Universal Service Fund (FUSF), which supports affordable telecommunications services for low-income consumers, rural communities, schools, libraries, and healthcare providers.
The Federal Communications Commission (FCC) establishes a quarterly contribution factor, which is applied to interstate and international telecommunications and Interconnected VoIP revenues. LTS may pass this charge through to customers as a separate line item, calculated in accordance with FCC guidelines.
This is a permissible pass-through surcharge and is not a government-mandated tax.
For more information, please visit the USAC website.
State and Local Taxes and Surcharges
State Universal Service Fund (SUSF)
LTS may be required to contribute to state-level universal service funds. These charges may be passed through to customers and are not government-mandated taxes.
Telecommunications Relay Services (TRS) Fund
Certain states require contributions to TRS programs that support communication services for individuals with hearing or speech disabilities. LTS collects and remits these fees as required.
Sales, Use, and Communications Taxes
State and Local Sales and Use Tax
Most states impose sales and use taxes on telecommunications services. Local jurisdictions may also impose additional taxes. These taxes are generally passed through to the end user.
Exemptions may apply for resale or for certain entities, such as government or nonprofit organizations.
Communications Services Tax
Some jurisdictions impose communications-specific taxes instead of, or in addition to, sales and use taxes. Rates vary by location and are passed through to customers where applicable.
Other State and Local Taxes
Gross Receipts Taxes
Some states impose gross receipts taxes on communications providers. Depending on the jurisdiction, these may or may not be passed through to customers.
Local Utility Taxes
Certain municipalities impose utility taxes on telecommunications services. These may be passed through where permitted.
Local License Taxes
In limited jurisdictions, local governments impose license taxes on service providers, which may be passed through to customers where applicable.
Other Fees
Federal Cost Recovery Fee / Federal Cost Recovery Charge
These fees recover costs associated with contributions to the Federal Telecommunications Relay Services (TRS) Fund.
These are permissible charges and not government-mandated taxes.
Cost Recovery Fee (CRF)
A Cost Recovery Fee equal to 6.95% of monthly recurring charges (excluding taxes) applies to certain regulated services. This fee helps offset costs associated with:
This is a permissible fee and not a government-mandated tax.
Annual Regulatory Fee
LTS is required to pay annual regulatory fees to the FCC. These fees vary each year.
Administrative Recovery Fee (ARF)
The Administrative Recovery Fee is used to recover costs associated with account servicing and platform provider charges, including maintenance and processing fees.
The ARF is currently 2.05% of monthly recurring charges (excluding taxes).
