Good Question: What Are Those Extra Cellphone Charges?
MINNEAPOLIS (WCCO) -- Ever read the fine print on your cell phone bill?
WCCO viewer Jeff from Alexandria did and noticed an extra $6 a month in taxes, surcharges and fees.
So, he emailed wanting to know: What are those extra charges?
Each cellphone provider labels the taxes, fees and surcharges slightly differently, but the Federal Communications Commission requires they be published on telephone bills. https://www.fcc.gov/consumers/guides/understanding-your-telephone-bill
There are a number of costs the cellphone companies must pay that they pass onto consumers, including:
- Administrative Fees: These generally cover the cost providers pay to other carriers when a customer talks with someone from another network
- Regulatory Charge: These help the carrier pay the costs of various local, state and federal government regulations
- Federal Universal Service charge: Phone companies are required to give to a government fund that helps service low-income areas, rural areas, schools and libraries
According to Verizon Wireless' webpage, "These are our charges, not taxes. These charges, and what's included, are subject to change from time to time."
Companies often will display a Relay/Telerelay Service Charge along with a 911 fee. That charge goes toward a fund for services people with hearing or speech disabilities.
Then there are local, state and federal taxes. There is generally a city tax, a county tax and a state tax. In Minnesota, the state tax is 6.875 percent. There's also a 95-cent 911 service fee.
In 2014, Minnesota collected $62 million to help pay for 911.