What is the e-911 tax?
The e-911 tax is a tax charged by the state, county, province, and or the city to provide emergency services relating to 911 calls. The tax will range from $0.20 to $4.50 per VoIP line depending on your state, county, province or city tax laws.
Beginning January 1, 2014, your billing statement will begin reflecting the applicable e-911 taxes according to your local state, county, province, and or tax laws.
Who will this affect?
This tax will affect RingCentral Office and RingCentral Professional customers who have one or more VoIP lines in the U.S. and Canada.
However, if your service/billing address is in one of the states listed below, you will not be affected by this change since these states have a different means of taxing, such as a percentage of the services, or do not impose an e-911 tax at the local level.
These states include: California, Missouri, Nebraska, New Mexico, Ohio, and Wisconsin.
What is the difference between the e-911 fee and the e-911 tax?
The FCC requires all communication providers that offer voice over internet protocol (VoIP) to provide emergency 911 services to their customers. The e-911 fee of $0.99 per line per month is to offset the costs associated with providing this service to our customers.
The e-911 tax is imposed by the state, county or city to pay for the costs associated with the design, construction, operation, maintenance and administration of public safety communications networks serving the jurisdiction. Examples include, but are not limited to, police departments, fire departments and emergency medical services.
What is the tax and how is it determined?
Taxes are determined by the state, province, county, and/or city. These taxes will be calculated based on your billing address.
The table below lists the states and some provinces that currently impose an e-911 tax based on VoIP line count, as well as whether there is a tax imposed at the local level (city or county), as of October 16, 2013. Rates are determined by the taxing jurisdictions and can be anywhere from $0.20 to $4.50 per digital line.
The information set forth in this article is accurate as of October 16, 2013. This article may not contain the most up-to-date information, including without limitation the e-911 taxes set forth above. RingCentral does not purport to provide you with tax or other legal advice. This article is provided for information purposes only. For more information and details of your e-911 tax rate, please contact a tax professional.