Understanding Taxes - Illinois

Below is a chart to Illinois tax definitions.

T, C, or D
Federal Excise Tax T C A federal tax on local telephone services and surcharges.
Federal Universal Service Fund T R, P A federal surcharge on interstate and international telephone services to support universal service programs such as the schools and libraries discount program. The Federal USF is also assessed on the Federal Line Charge and the Local Number Portability Charge.
State Sales Tax T, C, or D C A tax levied by a state government on the sale of tangible personal property and/or certain services such as telephone or cable.
Simplified Municipal Telecom Tax T R, P A tax levied by a local government on all intrastate telephone services.
ST Telecommunications Excise Tax T R, P A tax levied by a state government on all intrastate telephone services.
ST Universal Service Fund Surcharge - Local T   A surcharge assessed on local and intrastate regional and intrastate long distance calls. Funds raised by this levy are used to keep basic local phone service affordable for subscribers of telecommunications carriers located in rural and high cost areas within the state.
State P.U.C. Tax T   A state imposed tax on the gross receipts on utility bills which supports the work of the Illinois Commerce Commission.
State Infrastructure Fee T C A fee levied by the state government on the gross charges for intrastate telephone services.
County and City Sales Tax T, C or D C A tax levied by a local government on the sale of tangible personal property and/or certain services such as telephone or cable.
City Rental Tax D,T C A rental tax, known as the Personal Property Lease Transaction Tax, is imposed by the City of Chicago upon the rental of personal property within the City. Rental tax applies to the monthly rental/lease charges for items such as modem rentals.
911 Tax - State, County or City T R, P The E911 system utilizes a computerized system to automatically route emergency telephone calls to the appropriate Public Safety Answering Point (PSAP). The enhanced 911 system allows the PSAP operator to automatically see the phone number and address of the person calling. The E911 fee covers the installation and maintenance expenses for the E911 system. All lines (residential and commercial) are subject to a monthly E911 charge per line which is imposed by the respective state and local Public Service commissions. However, the way that the charge is applied varies by state and in some markets vary by county as well.
Universal Service Charge T R The purpose of this fund is to maintain the affordability of local service rates for customers while allowing rural telephone companies to reduce accesss charges and intra-LATA toll rates, on a revenue-neutral basis, thereby encouraging greater competition. The charge cannot be passed on to the customer.
Federal Line Charge T C A nationwide charge that is designed to recover a portion of local telephone companies' costs associated with providing long distance carriers with access to the local phone network. Long distance carriers pay the remainder of the cost. This charge is regulated by the FCC.
Local Number Portability T C Local Number Portability charges provide funds for significant upgrades to networks, services and systems that will allow customers to keep their phone numbers when they change local phone companies. Per an FCC ruling, each access line is subject to a this monthly charge regardless of whether the number has been ported or not.
Port Charge T C This surcharge is assessed only on Commercial customers using ISDN and DS-1 products. It is a recurring charge for the use of the port which interfaces and connects the local loop to a high-speed network.
Franchise Fee C R, P A fee paid to a municipality to allow use of the public streets and rights-of-way and operate a cable television system within that municipality. This is a contractual agreement with the town/city ans is normally assessed on all cable revenue.
Amusement Tax C C An amusement tax is imposed by the City of Chicago upon the patrons of every amusement within the City. Amusement includes any paid television programming whether transmitted by wire, cable, fiberoptics, laser, microwave, radio, satellite, or similar means.
Regulatory Fee C R, P This fee is an annual assessment imposed by the FCC pursuant to Public Law 103-66, Omnibus Budget Reconciliation Act of 1993. The FCC uses these monies to offset costs associated with its enforcement, public service, international and policy and rulemaking activities.
Municipal Construction Surcharge C, D C Municipal Construction Surcharge recovers a portion of the expenses RCN incurs from government mandated relocation of its facilities that are in the public rights-of-way to prevent interference with street repairs, public construction projects or other activities required for public health, safety or convenience.
Taxes & Fees
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