Understanding the Taxes & Surcharges
on Your Telephone Bill
Maine Telecommunications Education Access Fund (MTEAF)

The MTEAF collects assessments from all wireline and wireless carriers and distributes these funds to designated vendors on behalf of Maine's schools and libraries. The Maine Public Utilities Commission (MPUC) established this fund in 2001. The charge can be found under the Other Charges and Credits section of your bill and is identified as ME SCHOOL & LIBRARY. For additional information on this charge, please see the MPUC DOC.

Maine Universal Service Fund (MUSF)

The MUSF collects assessments from every telecommunications carrier that has intrastate revenues of more than $12,500. The fund was implemented by the MPUC to help make phone service affordable and available to all, including consumers with low income. The charge can be found under the Other Charges and Credits section of your bill and is identified as ME UNIVERSAL SERVICE FUND. For additional information on this charge, please see the MPUC DOC.

ConnectME Fund

The State of Maine ConnectME Authority has implemented the ConnectME Fund. The funds collected will be used to expand or improve the deployment of Broadband availability of wireless service in unserved or underserved areas of Maine. Effective September 1, 2007, an assessment in the amount of .25% will be charged to the total intrastate charges on your bill and listed as separate line item. For additional information regarding this surcharge, please visit the MPUC webiste Maine Statute.

E 9-1-1 Funding

E 9-1-1 is an emergency telecommunications service that automatically displays a caller's location in order to direct a call to the appropriate call answering center. The call answering center then directs the call to appropriate emergency service such as; police, fire or rescue. The statewide surcharge of 50¢ is mandated by the MPUC. The revenues from this fund are used to fund staff and costs associated with the implementation, operation and management of E 9-1-1. The charge can be found under the Monthly Services section of your bill and is identified as State of Maine - E911 FEE. For additional information on the charge or to view the Maine law, please visit the State of Maine web site.

Subscriber Line Charge

The FCC approved rate helps compensate the local telephone company for part of the cost of installation and maintenance of the telephone wires, poles and other facilities that link your home to the telephone network. The charge can be found under the Monthly Service section of your bill and is identified as FCC ORDERED ACCESS CHARGE. For additional information regarding the charge, view the Code of Federal Regulations (Adobe PDF document).

If you would like to view the tariff that governs this rate, view the NECA Tariff (Adobe PDF document).

Federal Universal Service Fund (USF)

Because telephones provide a vital link to emergency services, to government services and to surrounding communities, it has been our nation's policy to promote telephone service to all households. The USF helps to make phone service affordable and available to all consumers, including those with low-incomes, those living in areas where the costs of providing telephone service is high, schools and libraries and rural health care providers. Congress has mandated that all telephone companies providing interstate services must contribute to the fund. The charge can be found under the Other Charges and Credits section of your bill and is identified as FED UNIVERSAL SERVICE CHARGE. For additional information regarding the charge, you can review the Order implementing the charge.

Or if you would like information regarding how the contribution factor is determined, please view the FCC Public Notice (Adobe PDF document).

If you would like to view the tariffs that govern this rate, please view the NECA Tariff (Adobe PDF document).

Service Provider Tax

The Maine Legislature recently enacted legislation that repeals the sales tax on certain kinds of service and replaces it with a new Service Provider Tax. The new law imposes a 5% service provider tax, effective July 1, 2004, on telecommunications services provided within the State. These services were subject to the 5% Maine sales tax. Thus on July 1, 2004, the tax on telecommunications services changed from a sales tax to a service provider tax. The charge can be found under the Monthly Services section of your bill and is identified as SERVICE PROVIDER TAX. If you would like to view the Maine law governing this change, please visit the Public Laws of Maine web site.

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