The local bill

Items on a local bill fall into one of four categories: regulated charges, nonregulated charges, taxes and fees, and charges from other carriers.

Regulated charges
Tariffs are filed with the state Public Utility Commission (PUC). Tariffs define the rules and pricing of telecom services. The prices for regulated charges are nonnegotiable, although the carriers often file additional tariffs to be used to offer special pricing to large customers. Line charges and calling rates are regulated charges.

Nonregulated charges
Carriers are not required to file tariffs for these services. Prices on nontariffed items are set based on current business and competitive conditions for the area. These charges are often “nonessential” services such as calling features and voice mail.

Taxes and fees
There are typically four types of taxes and fees that appear on local phone bills:

Service fees and charges, such as the 911 surcharge and PUC funding fees;

Franchise tax—usually a local item like a municipal charge;

Sales, use, or special taxes—usually written as “state and local taxes” on the bill;

Federal excise tax—this 3% tax was originally a World War II emergency tax.

Charges from other carriers
Charges from companies other than your own local carrier sometimes appear at the back of your local telephone bill. Because local carriers keep a small portion of the money, they are always happy to provide this service to other companies. Some of the charges that may appear are collect calls, 900 calls, voice mail, long distance, and Internet access.