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Taxes

These taxes, fees and other surcharges may be applied to your bill. See below for an explanation of each charge. 

Government 911 surcharge

Local or state governments mandate that customers pay this surcharge through their telecommunications service provider to help pay for emergency services such as fire and rescue. Monthly charges are applied per phone line.

Federal access charge

The federal access charge covers the cost of providing access and maintenance to local telephone networks. Fees vary by the type of phone line and typically change each year. Monthly charges are applied per phone line.

Federal access recovery charge (ARC)

The federal access recovery charge is related to Federal Communications Commission (FCC) rules for rates charged between providers to carry telecommunications traffic. This fee was implemented on November 1, 2012. Monthly charges are applied per phone line.

Federal Communications Commission (FCC) fee

The Federal Communications Commission (FCC) fee helps fund federal government oversight and regulation of U.S. cable television operator.

Federal excise taxes

The federal government mandates telephone lines be charged an excise tax at a specified percentage. This applies for local and long distance calling.

Federal TRS and administration fee

The federal telecom relay service (TRS) and administration fee helps support the nationwide network for speech-to-speech services for individuals with hearing and speech disabilities. Monthly charges are applied per phone line.

Telecom relay service charge

The telecom relay service (TRS) charge helps supports individual state relay services, which provides free, comprehensive telephone accessibility for individuals with hearing and speech disabilities. Monthly charges are applied per phone line.

Franchise fee

The franchise fee on your statement is forwarded from Midco to your local city or township, which has allowed Midco access to the public rights of way for building and operating our cable TV system in that municipality. Rates vary by municipality. The local government sets the fee, which is a percentage of the cost of specific cable TV services.

Gross receipts tax

The gross receipts tax is based on intrastate and/or interstate traffic for telephone charges. A monthly tax percentage is applied.

Local government channel fee

Mandated by the local government, this fee helps support capital expenditure of a local channel, such as a city, government or school channel that often carries programming such as city council meetings, school board meetings, community history and so forth. This fee is also known as the PEG fee (public, education and government). In the Midco service area, this fee only applies in Minnesota. 

Local number portability fee

The local number portability fee enables customers to keep their existing telephone number should they choose to move to another telephone provider.

Retransmission fee

From time to time, we are required to negotiate with local broadcast and cable networks for the right to transmit their signals. Midco acquires the right to carry networks through contracts we negotiate with those companies, and we must pay a fee to the media companies for those rights. The fees are then collected from our customers and paid to the media companies.

State and local taxes

City taxes vary by community. For business customers, the following monthly taxes apply in each state:

  • Kansas: Taxes on all services except internet services. Taxes will apply on equipment (i.e. modems). 
  • Minnesota: Taxes on all services except internet services.
  • North Dakota: Taxes on all services except cable TV and internet services.
  • South Dakota: Taxes on all services.

TAP charge

The Telephone Assistance Plan (TAP) charge helps provide discounted telephone service to qualified customers. In the Midco service area, this fee only applies in Minnesota and is applied to each phone line.

Transit improvement tax

The transmit improvement tax supports transportation needs such as road improvements and mass transit. In the Midco service area, this fee only applies in Minnesota at a rate set by each city or township.

Universal service fee

The universal service fee supports the Universal Service Fund (USF), an FCC-mandated fund that promotes access to telecommunications services at reasonable rates for those living in rural and high-cost areas, income-eligible consumers, rural health care facilities, schools and libraries.

The universal service fee is charged on services considered to be interstate traffic. The fee rate fluctuates quarterly.