Notice of Taxation on Telecommunications Services (Effective March 15, 2025)

RingRx is a registered telecommunications company providing service throughout the United States. This status requires us to register with every state and locality where we offer services and to report our customers’ taxable usage as required by each relevant taxing authority.

Taxable usage is determined by the type and quantity of service used. This does not include communications content or other customer activities; therefore, there is no concern about security or confidentiality.

The Federal Communications Commission (FCC) regulates VoIP services and collects specific fees, while the Internal Revenue Service (IRS) collects taxes. Federal charges include contributions to the Federal Universal Service Fund (FUSF) and E911 service fees. State and local governments also regulate VoIP services and collect taxes accordingly. These can vary widely, with some states requiring sales tax on VoIP services or additional fees for specific service categories.

RingRx is required by law to collect federal, state, and local taxes and fees on all customers and remit them to the appropriate taxing authorities on the customer’s behalf. Accordingly, these fees and taxes will appear on your invoice.

Previously, RingRx was not required to collect some fees and taxes in some regions.  As a result, some customers have not seen many or any taxes or fees on their invoices.  However, due to changing status of our payment requirements, RingRx is now required to apply telecommunications taxes and add fees on certain transactions to ensure full compliance with state and local tax regulations. This change takes effect on March 15, 2025.  As a result, most if not all RingRx subscribers will see taxes and fees on their invoices created after this date.

Taxes and fees will be reflected on each invoice and itemized by name and amount. RingRx passes along any potential cost savings to our customers whenever possible, and is charging only the exact amounts specified by law. Unlike some providers, RingRx does not mark up or add extra fees beyond what regulations require. So what appears on your bill is something required by a taxing authority.

RingRx cannot modify or waive taxes or fees because customers are legally required to pay them; by law, we facilitate payment to the taxing authority on your behalf. Taxes may not affect all RingRx customers—only those in locations that require these fees and taxes.

In addition to federal, state, and local regulations, certain non-governmental bodies may also impose fees. These are primarily discretionary and apply only if customers use the associated services. We disclose such fees when a service is initiated or added. Examples of fees and taxes customers may see on their invoices include:

State and Local VoIP Taxes

VoIP (Voice over Internet Protocol) services are subject to various state and local taxes, fees, and surcharges, which can vary significantly depending on the jurisdiction. While VoIP services were initially exempt from traditional telecommunications taxes, many states now impose taxes similar to those applied to landline and mobile phone services.

State and Local Sales Tax

• • Many states apply sales tax to VoIP services, just like any other telecommunications or digital service.
  • Sales tax rates vary by state and sometimes by county or city.

Telecommunications Taxes & Fees

• • Some states classify VoIP as a telecommunications service, making it subject to utility or telecom taxes.
  • Rates and applicability depend on whether the state considers VoIP an information service (less regulated) or a telecom service (more regulated)

Public Utility or Gross Receipts Taxes

• • Some states impose public utility taxes or gross receipts taxes on VoIP providers, even if VoIP is not classified as a traditional utility service.
  • These taxes are typically a percentage of gross revenue and may be passed on to customers.

Right-of-Way Fees

• • Some municipalities charge right-of-way fees for VoIP providers using public infrastructure for internet-based calls.

State-by-State Variations

• • Some states, such as California, New York, and Texas, have higher taxes and fees on VoIP services.
  • Other states, like Oregon and Delaware, may have fewer regulatory taxes on VoIP.
  • The classification of VoIP as a telecommunications or information service affects tax treatment.

Other Federal

FCC Regulatory Fees

• • The FCC charges annual regulatory fees to VoIP providers to fund its oversight of telecommunications services.
  • These fees vary based on provider revenue and are typically not itemized on customer bills.

Telecommunications Relay Service (TRS) Fund Fee

• • The TRS Fund supports telecommunications services for individuals with hearing or speech disabilities.
  • VoIP providers must contribute to this fund based on interstate and international revenues.
  • The fee is adjusted annually by the FCC.

North American Numbering Plan (NANP) Fee

• • This fee helps fund the administration of telephone numbers across North America.
  • VoIP providers must pay this fee, but it is usually a small, non-itemized charge.

Local Number Portability (LNP) Fee

• • Funds the system that allows customers to keep their phone numbers when switching providers.
  • Some VoIP providers pass this charge to customers.

 

E911 Fees

The E911 (Enhanced 911) fee for VoIP (Voice over Internet Protocol) services is a government-mandated charge that funds emergency call services, ensuring that VoIP users can reach 911 and that their location is transmitted to emergency responders.  How E911 Fees Apply to VoIP Services

Mandatory Contribution

• • The FCC requires interconnected VoIP providers (those allowing calls to and from traditional phone networks) to provide E911 service.
  • VoIP providers may charge customers an E911 fee to cover their compliance costs.

Fee Amount

• • E911 fees vary by state, county, and municipality.
  • Some states have flat-rate fees, while others base them on the number of phone lines.

VoIP Location Challenges

• • Unlike traditional landlines, VoIP services can be portable, meaning users can move locations without updating their registered address.
  • VoIP users must register and update their location with their provider to ensure accurate 911 call routing.

Billing and Transparency

• • The E911 fee is listed as a separate charge on a VoIP service bill.

USF Fees

The USF fees for VoIP service refer to charges related to the Universal Service Fund (USF), which helps fund telecommunications services for rural areas, low-income consumers, schools, libraries, and healthcare providers in the U.S.   How USF Fees Apply to VoIP Services

• • Contribution Factor: The Federal Communications Commission (FCC) sets a quarterly USF contribution factor, which determines the percentage of interstate and international revenues that providers must contribute to the fund.
  • VoIP Services Covered: Interconnected VoIP providers (those that allow calls to and from the public telephone network) are required to contribute to the USF based on their interstate and international revenue.
  • Pass-Through to Customers: Many VoIP providers pass these costs to customers as a regulatory fee on their bills.
  • Current USF Rate: The contribution factor fluctuates each quarter and can be checked on the FCC’s Universal Service Fund webpage.

Text Campaign Registry Fees

Text campaign registry fees refer to charges associated with registering and managing A2P (Application-to-Person) messaging campaigns through The Campaign Registry (TCR). These fees apply to businesses and organizations that send bulk or automated text messages (e.g., marketing, alerts, notifications) over 10DLC (10-digit long codes) in the U.S.  The fees listed here are general.  For  a more accurate list of TCR fees you should expect to pay at RingRx, please go here

Types of Text Campaign Registry Fees

1. 1. Campaign Registration Fees

      • Businesses must register their text messaging campaigns with TCR to ensure compliance with carrier regulations.
      • Registration fees vary based on the type of campaign (e.g., marketing, customer service, nonprofit).
      • Typical one-time registration fees range from $10 to $50 per campaign.

   2. Monthly Campaign Fees

      • Ongoing fees apply for each registered campaign.
      • Monthly fees vary depending on the campaign type and message volume (typically $1.50 to $10 per month per campaign).

   3. Brand Registration Fees

      • Before registering campaigns, businesses must first register their brand (company or organization) with TCR.
      • Fees for brand registration range from $4 to $44, depending on the business type and verification level.  Most RingRx customers will be $4.

   4. Carrier-Specific Fees

      • Major carriers (AT&T, T-Mobile, Verizon) impose additional fees for registered A2P 10DLC traffic.
      • These fees can include per-message surcharges (e.g., $0.002 to $0.005 per SMS/MMS).  RingRx does not pass these fees on to you.

   5. Special Campaign Fees

      • Some campaigns, such as charity, political, or emergency alerts, may have different pricing or fee waivers.

Why These Fees Exist

The Campaign Registry was introduced to combat spam, fraud, and non-compliant messaging while improving deliverability and trust in business texting. By requiring registration and fees, carriers can verify and monitor text campaigns more effectively.

 

Transparency in fees and taxes

Given the number of authorities involved, this list is not exhaustive and accurate estimates of taxes in every locale is not possible to provide here.  Disclaimer – this support article is for general guidance only.  Please visit RingRx’s Terms of Service for official details.