Products and Pricing

Internet access discussion, including Fusion, IP Broadband, and Gigabit Fiber!
14 posts Page 2 of 2
by dane » Mon Apr 09, 2012 9:30 am
jmunowitch wrote:San Francisco: $12.26

So, yes, one could call my city Tax Happy. I don't necessarily agree with that assessment though.
One issue with San Francisco is that unlike any other city we serve, they charge a flat fee instead of a percentage. So, while many cities charge a utility user tax which might be an average of 6% or so of the phone service fee, San Francisco charges a flat $2.86. This means that as the cost of phone service drops (Fusion used to be $50 for example, and has dropped to $39.95), the fee becomes a larger and larger percentage burden, now over ten percent, well above the UUT of most other cities.
Dane Jasper
Sonic
by jmunowitch » Mon Apr 09, 2012 9:33 am
dane wrote: So, while many cities charge a utility user tax which might be an average of 6% or so of the phone service fee, San Francisco charges a flat $2.86.
Offhand, do you know if this applies to VoIP services?
by dane » Mon Apr 09, 2012 10:25 am
jmunowitch wrote:
dane wrote: So, while many cities charge a utility user tax which might be an average of 6% or so of the phone service fee, San Francisco charges a flat $2.86.
Offhand, do you know if this applies to VoIP services?
It does not. The access line fee applies to POTS voice lines.

The one that I found most interesting is the San Francisco voice T1 trunk line fee - a T1 of 24 voice lines incurs a fee of $386.63. The T1 "supertrunk" is a product that used to cost $900-$1200/mo, so this wasn't too bad, but these days the service itself costs about what the fee is, so the "tax" is about 100%!

(We don't sell T1 trunks, so not applicable for us. =)
Dane Jasper
Sonic
by Socal Fusion Wannabe » Tue Apr 10, 2012 12:01 am
Thanks for the many answers.

I suspected that there was a parcel-tax ("flat rate") involved, and indeed, there was.

I hope that Sonic will consider selling a "Naked" Fusion, rather than forcing customers to pay for dialtone we may not desire. Especially if we're looking at the bonded-pair configuration.
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