On 4/16/2014 2:32 PM, Matt Hoppes wrote:
> OK... but why is there no USF on an INTRAstate circuit but there is on
> an INTERstate?

Jurisdiction.  The Federal USF is, by law, only applicable to interstate 
services.

USF was created in 1996.  Before then, rural telcos got all of their 
subsidies from long-distance calling.  If you made a 25c/minute call 
from New York to Grouse Creek, New York Tel might get a few cents for 
its end, while Beehive got about 40 cents of the 25.  The long distance 
carrier kept the rest.  Which, in the case of calls to Grouse Creek, was 
negative.  But regulations required them to deliver the calls and charge 
the same price to retail subscribers regardless of whether it was going 
to Salt Lake City at say 4c/min or Grouse Creek at ten times as much.

So in order to fix that mess, USF created a tax called a fee (because 
Americans hate taxes, but are assumed to be easy to fool) on all 
interstate telecom.  So the access charges could be lowered, and long 
distance rates could come down.

But jurisdictional rules being what they are, calls within a state were 
only subject to state regulation.  So states could keep high access 
charges (as many did, a practice finally banned as of 2013) and/or 
create a state USF of their own, if they wanted to tax intrastate 
telecom.  And some did.

>
> Matt Hoppes
> Director of Information Technology
> Indigo Wireless
> +1 (570) 723-7312
>
> On 4/16/14, 2:22 PM, ralphli...@bsrg.org wrote:
>> There was none. We just kept refusing to pay it and explained it several
>> times. They finally removed it.
>> Having a good relationship with your A.E. helps a lot I guess.
>> I lot of it was just making them understand that, since they had all the
>> addresses of the drops, it was NOT interstate.
>>   
>> I used to fight this with the phone company as well several years ago in
>> another life.
>>
>>      ------------------------------------------------------------------------
>>      *From:* Matt Hoppes [mailto:mhop...@indigowireless.com]
>>      *To:* WISPA General List [mailto:wireless@wispa.org]
>>      *Sent:* Wed, 16 Apr 2014 13:33:19 -0400
>>      *Subject:* Re: [WISPA] CAF-USF-StateTax for WISPs
>>
>>      That's what I meant... interesting. Good to know! Can you reference
>>      the paperwork ID number you had to request?
>>
>>
>>      Matt Hoppes
>>      Director of Information Technology
>>      Indigo Wireless
>>      +1 (570) 723-7312[Call: +1 (570) 723-7312] <#>
>>
>>      On 4/16/14, 1:28 PM, ralphli...@bsrg.org
>>      <mailto:ralphli...@bsrg.org> wrote:
>>      > From our Metro Ethernet network
>>      >
>>      >
>>      ------------------------------------------------------------------------
>>      > *From:* Matt Hoppes [mailto:mhop...@indigowireless.com
>>      <mailto:mhop...@indigowireless.com>]
>>      > *To:* WISPA General List [mailto:wireless@wispa.org
>>      <mailto:wireless@wispa.org>]
>>      > *Sent:* Wed, 16 Apr 2014 12:41:22 -0400
>>      > *Subject:* Re: [WISPA] CAF-USF-StateTax for WISPs
>>      >
>>      > So you got the USF tax removed from your Comcast transport circuit?
>>      >
>>      >
>>      > Matt Hoppes
>>      > Director of Information Technology
>>      > Indigo Wireless
>>      > +1 (570) 723-7312[Call: +1 (570) 723-7312[Call: +1 (570) 723-7312]
>>      <#>] <#>
>>      >
>>      > On 4/16/14, 12:30 PM, ralph wrote:
>>      > > We did this, and won.
>>      > >
>>      > > Still trying to get credit for what was paid before we squeaked.
>>      > >
>>      > >
>>      > >
>>      > > *From:*wireless-boun...@wispa.org
>>      <mailto:wireless-boun...@wispa.org>
>>      > <mailto:wireless-boun...@wispa.org
>>      <mailto:wireless-boun...@wispa.org>>
>>      > [mailto:wireless-boun...@wispa.org
>>      <mailto:wireless-boun...@wispa.org>
>>      <mailto:wireless-boun...@wispa.org <mailto:wireless-boun...@wispa.org>>]
>>      > > *On Behalf Of *Kristian Hoffmann
>>      > > *Sent:* Tuesday, April 15, 2014 9:06 PM
>>      > > *To:* WISPA General List
>>      > > *Subject:* Re: [WISPA] CAF-USF-StateTax for WISPs
>>      > >
>>      > >
>>      > >
>>      > > The key for Comcast is to make sure your contract says
>>      intra-state and
>>      > > not inter-state for the tax jurisdiction. They don't collect USF on
>>      > > intra-state circuits, only local city/county/state taxes as
>>      > applicable.
>>      > > If your contract says inter-state (and it isn't inter-state),
>>      you can
>>      > > harass your sales rep into getting a change order done. If it's
>>      > > intra-state and they still collect USF, then make the appropriate
>>      > stink
>>      > > with your sales rep.
>>      > >
>>      > > -Kristian
>>      > >
>>      > > On 04/15/2014 03:44 PM, Matt Hoppes wrote:
>>      > >
>>      > > 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 <mailto:fai...@snappytelecom.net>
>>      <mailto:fai...@snappytelecom.net <mailto:fai...@snappytelecom.net>>
>>      > > <mailto:fai...@snappytelecom.net <mailto:fai...@snappytelecom.net>
>>      > <mailto:fai...@snappytelecom.net
>>      <mailto: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[Call: (305)663-5518[Call:
>>      (305)663-5518] <#>] <#> Option 2 or Email:
>>      > > supp...@snappytelecom.net <mailto:supp...@snappytelecom.net>
>>      <mailto:supp...@snappytelecom.net <mailto:supp...@snappytelecom.net>>
>>      > <mailto:supp...@snappytelecom.net
>>      <mailto:supp...@snappytelecom.net> <mailto:supp...@snappytelecom.net
>>      <mailto:supp...@snappytelecom.net>>>
>>      > >
>>      > >
>>      > >
>>      > >
>>      >
>>      ------------------------------------------------------------------------
>>      > >
>>      > > *From: *"Matt Hoppes" <mhop...@indigowireless.com
>>      <mailto:mhop...@indigowireless.com>
>>      > <mailto:mhop...@indigowireless.com
>>      <mailto:mhop...@indigowireless.com>>
>>      > > <mailto:mhop...@indigowireless.com
>>      <mailto:mhop...@indigowireless.com>
>>      > <mailto:mhop...@indigowireless.com
>>      <mailto:mhop...@indigowireless.com>>>>
>>      > > *To: *"WISPA General List" <wireless@wispa.org
>>      <mailto:wireless@wispa.org>
>>      > <mailto:wireless@wispa.org <mailto:wireless@wispa.org>>
>>      > > <mailto:wireless@wispa.org <mailto:wireless@wispa.org>
>>      <mailto:wireless@wispa.org <mailto: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 <mailto:wirelessn...@rapiddsl.net>
>>      <mailto:wirelessn...@rapiddsl.net <mailto:wirelessn...@rapiddsl.net>>
>>      > > <mailto:wirelessn...@rapiddsl.net <mailto:wirelessn...@rapiddsl.net>
>>      > <mailto:wirelessn...@rapiddsl.net
>>      <mailto: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[Call: 301-515-7774[Call: 301-515-7774] <#>] <#>
>>      > >
>>      > > IntAirNet- Fixed Wireless Broadband
>>      > >
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