Let's say this differently..... The USF (TAX) Obligation is on the Service Provider (Telco etc), and it is a Tax on the Telco, not the Telco's customers. The Telco, can choose to recover this from it's customers or NOT AT ALL. However, the rules that have to be followed, in regards to recovery are .. Apply evenly across the customer base Cannot Recover more than Telco's USF Obligation .. Exemption from this are narrowly defined (Gov entities, and some Non Profit, i am going by memory) AND any Entity that is under obligation to contribute to USF directly ....(not deminimus)
previously most telco's were a bit loose in letting re-sellers have their exemptions, but over the last few year they have become more stringent... they now check your 499 to make sure you are not deminimus. ------------------------------- BTW, the big rub comes in, when one's status changes from de-minimus to not being de-minimus...... since FCC calculates one's USF contribution obligation in arrears, one has the pleasure of paying all the recovery fees to it's vendors, and the whole amount to FCC as well... If you go to them and say, hey you are taxing me twice/ you are making me pay this twice.... Their answer, we are not... we are only asking you to pay the obligation to us (the tax) once, now... what you have paid to your vendors is a 'fee', and we have nothing to do with that..... you go duke that one out with your vendors.... Vendor's response..... It's the Federal Law, everyone pays... if you fill out your exemption docs, we will not collect the recovery fee from you moving forward.. but the past is the past... And, if you go in the other direction.... from being not de-minimus to being de-minimus....you get screwed again.. because FCC calculates one's future USF obligations based on previous years contribution... so you have to pay.....and when you file your numbers... you get to have a nice conversation with FCC.... They say, we don't understand how did your actual numbers drop..... after you get past it... they say... OK... moving forward i.e. next year the numbers will change... if you ask, hey what about this year ?.. .Answer is .. Sorry, we don't issue refunds, and we have no way to make 'corrections' to our billing system (which no one there understands)... So you are SOL again... I think we should replace the the word CF (ClusterF***) with the acronym USF ! ------------------------------ Faisal Imtiaz Snappy Internet & Telecom 7266 SW 48 Street Miami, FL 33155 Tel: 305 663 5518 x 232 Help-desk: (305)663-5518 Option 2 or Email: supp...@snappytelecom.net ----- Original Message ----- > From: "Tom DeReggi" <wirelessn...@rapiddsl.net> > To: "WISPA General List" <wireless@wispa.org> > Sent: Tuesday, April 15, 2014 9:21:30 PM > Subject: Re: [WISPA] [Spam] Re: CAF-USF-StateTax for WISPs > Regarding USF.... > " wholesaler must have evidence that the reseller customer both “(1) > [incorporates] the purchased telecommunications services into its own > offerings, and (2) can reasonably be expected to contribute to support > universal service based on revenues from those offerings." > In the past it was possible to be exempt from your upstream from charging > you, by only declaring that you were a reseller, and all that you had to do > to get exempted was to show that you utilized the telecommunications > services in your own retail offerings. The advantage to USF, would have been > the ISP would likely sell the retail service for more money than the > wholesale price and therefore collect higher USF funds. However, the loop > whole for the ISP was that once they were exempt with their upstream, there > was not much control to verify how much USF the downstream ISP would collect > or be required to collect. For example, if the reseller ISP only sold > information services "Internet Access", the ISP would never collect or pay > USF. So, the above quoted clause did away with that loophole, by adding > section (2), now making it a requirement that the wholesaler reasonably > expect the reseller to pay into the USF based on revenues from those > offerings. Meaning Wholesalers could make downstream ISPs prove they are > paying into USF before allowing exemption. > Tom DeReggi > RapidDSL & Wireless, Inc > IntAirNet- Fixed Wireless Broadband > > ----- Original Message ----- > > > From: Faisal Imtiaz > > > To: WISPA General List > > > Sent: Tuesday, April 15, 2014 6:46 PM > > > Subject: [Spam] Re: [WISPA] CAF-USF-StateTax for WISPs > > > They all do..... (i.e. try to screw the ISP/NSP/WISP).... > > > Chase down the person in-charge of their Tax Dept, and ask them for ITNA > > Tax > > Exemption Form.... > > > :) > > > Faisal Imtiaz > > > Snappy Internet & Telecom > > > 7266 SW 48 Street > > > Miami, FL 33155 > > > Tel: 305 663 5518 x 232 > > > Help-desk: (305)663-5518 Option 2 or Email: supp...@snappytelecom.net > > > ----- Original Message ----- > > > > From: "Matt Hoppes" <mhop...@indigowireless.com> > > > > > > To: "WISPA General List" <wireless@wispa.org> > > > > > > Sent: Tuesday, April 15, 2014 6:44:33 PM > > > > > > Subject: Re: [WISPA] CAF-USF-StateTax for WISPs > > > > > > Oh really? Comcast wants to charge me 16% USF on a point to point to > > > carry > > > Internet traffic. > > > > > > Sent from my iPad > > > > > > On Apr 15, 2014, at 6:27 PM, Faisal Imtiaz < fai...@snappytelecom.net > > > > wrote: > > > > > > > hmmm...... not quite accurate... > > > > > > > > > > Internet Freedom Act was updated to allow for taxes not to apply to > > > > internet > > > > access as well as communication circuits carrying internet access. > > > > > > > > > > Regards. > > > > > > > > > > Faisal Imtiaz > > > > > > > > > > Snappy Internet & Telecom > > > > > > > > > > 7266 SW 48 Street > > > > > > > > > > Miami, FL 33155 > > > > > > > > > > Tel: 305 663 5518 x 232 > > > > > > > > > > Help-desk: (305)663-5518 Option 2 or Email: supp...@snappytelecom.net > > > > > > > > > > ----- Original Message ----- > > > > > > > > > > > From: "Matt Hoppes" < mhop...@indigowireless.com > > > > > > > > > > > > > > > > To: "WISPA General List" < wireless@wispa.org > > > > > > > > > > > > > > > > Sent: Tuesday, April 15, 2014 6:12:00 PM > > > > > > > > > > > > > > > Subject: Re: [WISPA] CAF-USF-StateTax for WISPs > > > > > > > > > > > > > > > I believe the reason you are being taxed is because this is a > > > > > transport > > > > > and > > > > > not an internet circuit. > > > > > > > > > > > > > > > As far as I know the internet freedom act only applies to Internet > > > > > access. > > > > > > > > > > > > > > > Sent from my iPad > > > > > > > > > > > > > > > On Apr 15, 2014, at 5:19 PM, "Tom DeReggi" < > > > > > wirelessn...@rapiddsl.net > > > > > > > > > > > wrote: > > > > > > > > > > > > > > > > Guys, > > > > > > > > > > > > > > > > > > > > > I've been out of the loop for a couple years, regarding current > > > > > > status > > > > > > of > > > > > > CAF/USF/Tax requirements for WISPs. I was surprised when I recieved > > > > > > my > > > > > > first > > > > > > bill from my new upstream fiber provider. > > > > > > > > > > > > > > > > > > > > > (they are a dark fiber provider, recently expanded to also offer > > > > > > metro > > > > > > ethernet IP) > > > > > > > > > > > > > > > > > > > > > Note: I do NOT buy IP Transit from this provider, nor Last mile > > > > > > Fiber. > > > > > > I > > > > > > am > > > > > > just buying a Point-to-Point Fiber Transport data link. > > > > > > > > > > > > > > > > > > > > > So I consider this a wholesale component or infrastructure > > > > > > component, > > > > > > not > > > > > > an > > > > > > End User Internet circuit. > > > > > > > > > > > > > > > > > > > > > In the past, my Fiber providers never charged me any Taxes or USF. > > > > > > > > > > > > > > > > > > > > > I was under the impression that as a WISP (Im not a CLEC) providing > > > > > > Broadband > > > > > > only services, I didnt need to collect or pay into USF, CAF, or > > > > > > State > > > > > > Taxes. > > > > > > And further, my Upstream should be exempt from having to pay and/or > > > > > > collect > > > > > > such fees from me. If so, I need to provide legal documentation to > > > > > > support > > > > > > my claim to my upstream. > > > > > > > > > > > > > > > > > > > > > THe new fiber provider is trying to charge me.... > > > > > > > > > > > > > > > > > > > > > The Federal USF stated was about 16.5% of monthly fiber cost. > > > > > > > > > > > > > > > > > > > > > The VA Communication Tax was about 6% of monthly fiber cost. > > > > > > > > > > > > > > > > > > > > > The Property Tax / Franchise/Row Recovery Fees 0.08% of monthly > > > > > > fiber > > > > > > cost. > > > > > > > > > > > > > > > > > > > > > First, I thought it was federal law that Broadband can not be taxed > > > > > > by > > > > > > the > > > > > > State. > > > > > > > > > > > > > > > > > > > > > Second, the USF amount stated was 16.5%, but in the past, when USF > > > > > > was > > > > > > applicable it was always only around 6%. > > > > > > > > > > > > > > > > > > > > > Note: I do NOT buy IP Transit from this provider, nor Last mile > > > > > > Fiber. > > > > > > I > > > > > > am > > > > > > just buying a Point-to-Point Fiber Transport data link. > > > > > > > > > > > > > > > > > > > > > So I consider this a wholesale component or infrastructure > > > > > > component, > > > > > > not > > > > > > an > > > > > > End User Internet circuit. > > > > > > > > > > > > > > > > > > > > > So questions are.... > > > > > > > > > > > > > > > > > > > > > 1) Am I exempt as a WISP. > > > > > > > > > > > > > > > > > > > > > 2) Is there a standard government form I can provide to my uptream, > > > > > > to > > > > > > document my exemption (similar to use tax resell certificate) > > > > > > > > > > > > > > > > > > > > > 3) Is CAF in effect now (Broadband providers paying into USF) and > > > > > > if > > > > > > so, > > > > > > what > > > > > > is the current % rate? > > > > > > > > > > > > > > > > > > > > > 4) Does it matter how my upstream classifies themselves versus how > > > > > > I > > > > > > classify > > > > > > myself? (for example, if they've obtained CLEC status or not, or im > > > > > > not > > > > > > a > > > > > > CLEC). > > > > > > > > > > > > > > > > > > > > > 5) Does it matter how I use the circuit? > > > > > > > > > > > > > > > > > > > > > 6) Any specific FCC code to point to, that specifies this clearly? > > > > > > > > > > > > > > > > > > > > > Figured Id ask, before I go searching through regulation code. > > > > > > > > > > > > > > > > > > > > > Tom DeReggi > > > > > > > > > > > > > > > > > > > > > RapidDSL & Wireless, Inc > > > > > > > > > > > > > > > > > > > > > 301-515-7774 > > > > > > > > > > > > > > > > > > > > > IntAirNet- Fixed Wireless Broadband > > > > > > > > > > > > > > > > > > > > > _______________________________________________ > > > > > > > > > > > > > > > > > > > > > Wireless mailing list > > > > > > > > > > > > > > > > > > > > > Wireless@wispa.org > > > > > > > > > > > > > > > > > > > > > http://lists.wispa.org/mailman/listinfo/wireless > > > > > > > > > > > > > > > > > > > > _______________________________________________ > > > > > > > > > > > > > > > Wireless mailing list > > > > > > > > > > > > > > > Wireless@wispa.org > > > > > > > > > > > > > > > http://lists.wispa.org/mailman/listinfo/wireless > > > > > > > > > > > > > > _______________________________________________ > > > > > > > > > > Wireless mailing list > > > > > > > > > > Wireless@wispa.org > > > > > > > > > > http://lists.wispa.org/mailman/listinfo/wireless > > > > > > > > > _______________________________________________ > > > > > > Wireless mailing list > > > > > > Wireless@wispa.org > > > > > > http://lists.wispa.org/mailman/listinfo/wireless > > > > > _______________________________________________ > > > Wireless mailing list > > > Wireless@wispa.org > > > http://lists.wispa.org/mailman/listinfo/wireless > > _______________________________________________ > Wireless mailing list > Wireless@wispa.org > http://lists.wispa.org/mailman/listinfo/wireless
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