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Taxes, Fees, and Surcharges

The rates and charges for services provided by Complete Interactive Technologies (CIT), Inc. are exclusive of the charges described below. These charges do not count toward the attainment of any volume or revenue commitment and will not be discounted or credited in any way.

Below are descriptions of most of the charges that could appear on any invoice. These charges may or may not apply depending on the type of service you subscribe to. There may also be other charges on your invoice that are not described below. Any questions should be directed to support@cit-4u.com.

In general, charges appearing on invoices under “Taxes and Surcharges” or a similar heading or line item represent: (1) taxes imposed by governmental or quasi-governmental agencies that CIT is required to collect on its services; (2) fees imposed by governmental or quasi-governmental agencies that CIT may or may not be required to pass through to customers; and/or (3) industry standard cost recovery surcharges.

Federal Universal Service Fund

The Federal Universal Service Fund (FUSF) surcharge is identified as the “Federal Universal Service” charge on your CIT bill. It is a monthly, percentage-based surcharge established by the Federal Communications Commission (FCC) and assessed on customers’ interstate and international service. This fund supports telecommunications and information services in schools, public libraries and rural health care facilities; and subsidizes local service for consumers with low incomes and who live in areas where the costs of providing telephone service is high. The percentage of the surcharge changes each quarter. The applicable rate can be found at http://www.fcc.gov/omd/contribution-factor.html/

State Universal Service Fund

Similar to the FUSF, a number of states have enacted their own universal service fund on a state level. Funding helps pay for services to low income customers, customers with communication disabilities, and customers who reside in rural areas served by small or rural telecom providers where costs of providing telephone service is high. The contribution factor varies by state.

Long Distance Access Charge

The Long Distance Access Charge is a monthly charge the company assesses to recover costs imposed by the Local Exchange Carriers furnishing access services for use with the company’s interexchange service.

Franchise Fee

In the event that you have volunteered personally identifiable information, you may correct or amend that information by editing your account profile or email us at contact@cit-4-u.com.

THE SECURITY OF YOUR INFORMATION

The municipal franchise fee is also often referred to as a “right-of-way” fee. It is a monthly charge imposed by local jurisdictions and paid by the customer to help recover the costs associated with providing telephone service, to include installation of underground conduit, outside telephone wires, and telephone poles. This fee varies by location and is often based upon an agreement between the local jurisdiction and CIT or upon local or state law.

Federal Excise Tax

The Federal Excise tax is imposed by the IRS and applied as percentage of standalone local telephone service and related features.

E911 Emergency System

This surcharge is imposed by local jurisdictions to fund the 911 Emergency Systems.

P.U.C. Tax

The Public Utility Commission (PUC) tax is a charge imposed by state telecommunications regulatory agencies on users of regulated services, which is used to finance operational costs of the state regulatory agency.

Sales Tax

Sales tax is a tax imposed by nearly all states, counties, cities and districts, on the sale of various goods and services for use or consumption. The applicability of the tax, as well as the rates, varies by each jurisdiction’s constitutional provisions, and some services may be exempt from state and local sales taxes pursuant to federal law.

Access Recovery Charge

The Access Recovery Charge (ARC) is calculated as a percentage of total monthly recurring charges, and implemented to recover a portion of the access charges imposed by local exchange carriers (LECs).

Federal Regulatory Fee

This is a monthly charge assessed on interstate and international charges that allow the company to recover costs imposed by the Federal Government for Telecommunications Relay Services for the hearing-impaired and national number administration.

Property Tax Recovery Charge

This is a charge that allows CIT to recover a portion of the property tax it pays to state and local jurisdictions.

Gross Receipts Tax

The Statutory Gross Receipts Tax is a tax on the privilege of doing business in the state measured by gross receipts received from business done in the state. This tax is typically imposed on the telecommunication provider; however, some states allow the provider to pass on the tax to the consumer.

Administrative Cost Recovery Fee

This is a fee that allows CIT to recover the costs associated with the collection, processing and payment of any tax, fee or surcharge imposed upon CIT or that CIT must and/or does collect on customer invoices which it must then remit to the applicable tax jurisdiction or regulatory body. This includes CIT’s internal costs associated with compliance with any regulatory agency.

Cost Recovery Fee

This is a fee that allows CIT to recover regulatory fees and expenses incurred by CIT, such as FCC regulatory fees to fund various federally mandated programs, (PUC) fees, various state business licenses, and various state annual regulatory fees not otherwise provided in other line items or surcharges.

Federal Access Recovery Fee

The Federal Access Recovery Fee (FARF) is a charge designed to recover, in part, CIT’s costs of purchasing local access service from LECs, which include regulatory fees that LECs assess on or pass through to CIT.

Universal Cost Recovery

Designed to recover access-related costs and municipality costs that cannot be recovered in a traditional line-item, per circuit/per service basis including increases due to FCC or other governmental or regulatory actions or judicial determinations made in connection with incumbent local exchange carrier charges for such circuits.

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