The charge varies from state to state based on the cost of providing local phone service in each area. Long distance phone carriers have passed this charge along to their customers at their own rates. This charge was implemented by the FCC to ensure affordable access to telecommunications services for low income consumers, rural consumers, schools and libraries, and rural health care providers. The long distance companies pay an amount to the FCC based on the previous year's revenues. The charge can either be based on a percentage of the interstate bill or a flat rate.
Carriers are free to decide how to recover the charge from consumers.
The Emergency Telephone Users Surcharge Tax funds the 911 Emergency Service in California. The tax does not apply to interstate calls. The City and County Utility Taxes are a user tax on the local phone bill, which are assessed based on the area of residence. Neither the City of San Diego nor the County of San Diego imposes a tax, although other cities in San DiegoCounty may charge a tax. The Federal Excise Tax is a user tax on the local phone bill.