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Taxes & Surcharges

MTA collects various taxes and surcharges each month that appear on your bill.
Here is a brief explanation and rates for each charge.

 Access Recovery Charge (ARC)

Description

This federal fee recovers a portion of the costs incurred in the provisioning and maintenance of telephone service. It is administered by the Federal Communications Commission.

Rate

Per Line:
$0.00 for MOA (Eagle River/Chugiak) customers
$0.19 for Mat-Su Borough except for Talkeetna Mult-line is $0.00 
$0.00 for Kenai Borough (Tyonek)
$1.69 for Denali Borough (Cantwell, Clear, Anderson, Healy) 
Single Line Business is $3.00 / Multi-line is $3.00

Effective

July 1, 2020

Alaska Universal Service Fund (AUSF)

Description

The RCA established the AUSF to promote universal telephone service in Alaska. This fund supports lower long-distance rates within Alaska.

Rate

Approximately 10.0% on local, intrastate and mobile voice services.

Effective

January 1, 2019

Enhanced 911 Emergency System Surcharge (E-911)

Description

The costs to operate the E911 emergency response systems are recovered through this surcharge. The money MTA collects is passed through to the Anchorage, Kenai, and Mat-Su Boroughs who build and maintain these public service systems.

Rate

Per Line: $1.50 for Mat-Su Borough; $2 for MOA (Eagle River/Chugiak) customers; $2 for Kenai Borough (Tyonek).

Effective

July 1, 2019 for Mat-Su, December 1, 2016 for MOA, and July 1, 2015 for Kenai Borough.

Universal Access Surcharge (UAS)

Description

The costs to operate Telecommunications Relay Service for the hearing and/or speech impaired are recovered by this Universal Access Surcharge.

Rate

Per voice line: $0.09 for residential and single-line businesses (landline and VoIP)

Effective

May 16, 2020

Federal Excise Tax (FET)

Description

The revenue collected from the telephone excise tax goes into the general receipts of the U.S. Treasury.

Rate

3.00%

Effective

July 31, 2006

Federal Universal Service Charge (FUSC)

Description

The Federal Universal Service fund helps provide comparable telephone rates in rural areas throughout the nation by offsetting the high cost of providing service in these areas. MTA receives money from this fund to keep local rates affordable and comparable to rates in urban areas.

Rate

26.5%

Effective

Effective July 1, 2020

Regulatory Cost Charge (RCC)

Description

The Regulatory Cost Charge provides funding to operate the Regulatory Commission of Alaska.

Rate

1.448% of total billing for intrastate (long distance) service charges.

Effective

July 1, 2020

Network Access Fee (NAF)

Description

A fee administered by the Alaska Universal Service Administrative Company which combines with other charges to support the costs of the network.

Rate

Residential is $5.75; business per line is $5.75; PRI and T1/DS1, a maximum of 5 charges per PRI is $5.75 for each or a maximum of $28.75 total.

Effective

August 1, 2015

Toll Line Access Charge (TLAC)

Description

The federal TLAC in combination with the FUSC recovers 25% of the fixed cost of the wires to your house and business that allow you to make calls. 55% of these costs are covered by your fixed monthly local service charge. The remaining 20% is recovered by a combination of the NAF and the AUSF surcharge.

Rate

$6.50 per single line for residential and business; $9.20 per line multiplied by a maximum of 5 for T1/DS1 or $46.00.

Effective

July 1, 2003

Local Sales Tax

Description

MTA is required to collect local sales taxes on telephone services assessed on behalf of local boroughs and cities in Alaska. The money collected by MTA is passed through to the local borough and/or city.

Rate

Local tax rates vary by municipality and borough.

Effective

Local tax effective dates vary by municipality and borough.

Cost Recovery Fee

Description

The Cost Recovery Fee (CRF) is a fee that MTA charges in order to recover various costs and expenses that it incurs in connection with legal and regulatory requirements. This fee is not a tax or surcharge required by the government.

Rate

$1.00 per single line for residential service, $1.70 for business service, $32.73 per PRI arrangement.

Effective

January 1, 2019.