Taxes and Fees

Taxes and Fees

Scope
​This article explains the common taxes, federally mandated charges, and provider-imposed fees you might see on your invoice. Not every charge applies to all customers or all services, but this guide helps clarify what each one means and why it may appear.
Notes
Links
  1. Finance Department
    1. finance@Inferno.partners

Overview

The taxes and fees listed here are among the most commonly applied. They help support regulatory compliance, infrastructure, emergency services, and the cost of delivering high-quality services.

Not all charges apply to every customer or service type. If you're a tax-exempt organization, some charges (such as sales tax) may not apply — see the Exemptions section below for details.

⚠️ This is not an exhaustive list. Additional charges may appear depending on your service configuration, usage, and local regulations.

Government-Mandated Taxes

These are required by law and vary by region:

Federal Excise Tax

  1. A tax imposed on interstate telecommunications services.

State and Local Sales Tax

  1. Varies by location and may be exempt if proper documentation is submitted.

Franchise Fees

  1. A fee assessed by local governments that allows telecommunications providers to use public rights-of-way (such as streets and utility poles) to deliver services.

Transit, Public Utility, and License Taxes

  1. Local or state taxes tied to utility operations.

Intrastate Tax

  1. Applies to calls and services within the same state.

Ohio Next Gen 911 Fee

  1. A state-mandated fee that supports the rollout and maintenance of Ohio’s Next Generation 911 system. This advanced system enables 911 centers to receive texts, videos, and enhanced location data to improve emergency response.

Federal Telecommunications Surcharges

These are FCC-mandated fees applied to telecom providers and passed to end users:

e911 (Enhanced 911)

  1. Supports emergency service centers (PSAPs) and helps ensure your 911 calls are routed accurately with your location information.

Federal Universal Service Fund (USF / FUSF)

  1. Helps fund telecom access in rural areas, low-income programs, and broadband in schools/libraries.

Federal Cost Recovery

  1. Helps offset costs related to compliance with federal telecom regulations and participation in government programs.

Telecommunications Relay Service (TRS)

  1. Funds relay services for individuals with hearing/speech disabilities.

Federal Subscriber Line Charge / Federal Access Charge (SLC)

  1. Helps ensure that providers can support the infrastructure necessary for telecommunications services.

Provider-Imposed Service Fees

These are not government-mandated but help cover operational and support costs:

Cost Recovery Fee

Helps cover behind-the-scenes costs of delivering and supporting services. Including:
  1. Regulatory compliance and administrative expenses
  2. Network access and interconnection fees
  3. Ongoing service improvements and security measures

Network / Infrastructure Fee

  1. Offsets investments in infrastructure, capacity, and service reliability improvements.

Exemptions

Some customers may qualify for exemption from certain state and local taxes, such as sales tax, depending on your organization type and jurisdiction. Common exemptions include:
  1. Non-profit organizations (e.g., 501(c)(3))
  2. Government agencies
  3. Educational institutions
  4. Resale partners
Important:
Tax exemptions generally do not apply to federal surcharges or fees, such as:
  1. Universal Service Fund (USF)
  2. e911
  3. Telecommunications Relay Service (TRS)
  4. Federal Cost Recovery
  5. Provider-imposed fees (e.g., Cost Recovery Fee, Network Infrastructure Fee)

How to Request an Exemption

If you believe your organization qualifies, please submit an Exemption Request or email finance@Inferno.partners with your account information and supporting documentation.

Additional Information

The taxes and fees listed in this article represent the most common charges customers may see, but they do not reflect every possible line item. Charges can vary based on:
  1. Service type (voice, data, messaging, toll-free, international, etc.)
  2. Location and local jurisdiction rules
  3. Regulatory changes or updates
  4. Special configurations or partner billing scenarios
  5. Usage-based fees or account-related charges
Depending on your services or location, you may also see additional line items such as:
  1. Late Payment or Reinstatement Fees
  2. Returned Payment Fees
  3. Local Number Portability (LNP) Fees
  4. International Access or Toll-Free Usage Charges
  5. Directory Listing or Caller ID (CNAM Dip) Charges
  6. Municipal or Telecom Utility Taxes specific to certain cities or states
  7. Regulatory Assessment Fees or CALEA Compliance Fees

We strive to be transparent about how and why these charges appear. If you have questions about a specific fee on your invoice, or you notice something not listed here, don’t hesitate to contact us at finance@inferno.partners — we’re happy to help clarify.