Calculating the Tax on Switched Access Lines
Residential and Business Lines
Subscribers are taxed on the number of switched access lines they order whether the switched access line is used for data transmission (fax machines or modems) or voice. Subscribers are not taxed on the number of extensions on their premises or the number of phones connected to the line. For example, a subscriber who ordered three switched access lines--one for personal use, one for business use and one for a fax machine--would pay a total of $2.10 per month in county and state E911 taxes. The county tax is 50 cents per switched access line per month for a total of $1.50. The state E911 tax is 20 cents per switched access line per month for a total of 60 cents.
Private Branch Exchange (PBX)
A Private Branch Exchange (PBX) is a private telephone system that is connected to the public switched network via trunk lines. A trunk line can connect only one telephone or station at a time to the public switched network and is considered one voice grade channel for tax purposes. Private Branch Exchanges are charged E911 tax based on the number of trunks, not the number of telephones or stations connected to the PBX. For example, a PBX system services 20 tele-phones and is connected to the public switched network via two trunks. The monthly E911 taxes total $1.40. The county E911 tax is 50 cents per trunk per month for a total of $1.00. The state E911 tax is 20 cents per trunk per month for a total of 40 cents.
Centrex
Centrex service is a business communications system that consists of Centrex station lines served from the same telephone company central office switch. All station lines are assigned and billed as a single system. Centrex lines have two types of service nonrestricted and restricted. Nonrestricted Centrex lines directly access the public switched network and are charged E911 tax based on the number of station lines. For example, a subscriber with 10 nonrestricted Centrex lines would pay a total of $7.00 per month in E911 taxes. The county E911 tax is 50 cents per station line per month for a total of $5.00. The state E911 tax is 20 cents per station line per month for a total of $2.00.
Restricted Centrex services are charged E911 tax based on the number of Network Access Registers, not the number of station lines. A Network Access Register (NAR) is software in the central office that performs two main functions. The NAR can connect the station to the public switched network or direct the call to another station in the Centrex system without passing through the public switched network. Each NAR is considered one voice grade channel for taxation purposes. For example, a subscriber orders five NARs and there are 10 tele-phones assigned to each NAR. The subscriber would pay a total of $3.50 per month in county and state E911 taxes. The county E911 tax is 50 cents per NAR per month for a total of $2.50. The state E911 tax is 20 cents per NAR per month for a total of $1.00.
Digital Switched Service
Digital Switched Service (DSS) provides digital exchange service for PBX customers that expands the voice and data transmission capability. Subscribers can order a DSI facility which enables the subscriber to add 24 trunks or a DS3 service which has transmission capacity equivalent to 672 trunks. Some of the trunks may be used only to transmit calls or data going into the business. Other trunks are used only for calls or data going out of the business. The remaining trunks are used for two-way voice transmission. The E911 tax is imposed on the actual number of trunks in service, without regard to whether they can be used to access E911 service.
For example, a catalogue company orders one DSI facility and uses 24 trunks. Twelve lines are in only and are used for orders. Eight lines are for out only calls and are used to transmit voice and data. The remaining four trunks are administrative lines and used for two-way communication. The subscriber would pay a total of $16.80 per month in county and state E911 taxes. The county E911 tax is 50 cents per trunk per month for a total of $12.00. The state E911 tax is 20 cents per trunk per month for a total of $4.80.
Integrated Services Digital Network (ISDN)
Integrated Services Digital Network (ISDN) is a digital exchange service that provides greater integrated voice and data capability using the public switched telephone network. ISDN is used in a business context or for telecommuters to permit a person to have both a telephone and a computer using a single line.
ISDN distributes voice and data by two standard methods of access: a Basic Rate Service (BRS) or a Primary Rate Service (PRS). BRS consists of three distinct channels on one pair of wires: two B (Bearer) channels and one D (Delta) channel. The B channel carries switched voice and/or data communications from the customer's premises to the central office. The D channel carries signaling information. PRS has the capacity for carrying 23 B channels and one D channel. For both BRS and PRS the E911 tax is imposed on each B channel in service, without regard to whether it carries communications from a telephone or a computer.
For example, a subscriber orders ISDN Basic Rate Service and uses two B channels. The subscriber would pay a total of $1.40 per month in county and state E911 taxes. The county E911 tax is 50 cents per B channel per month for a total of $1.00. The state E911 tax is 20 cents per B channel per month for a total of 40 cents.
If a subscriber orders ISDN Prime Rate and only uses 10 B channels, they are only taxed on the channels used. In this case, the subscriber would pay a total of $7.00 per month in county and state E911 taxes. The county E911 tax is 50 cents per B channel per month for a total of $5.00. The state E911 tax is 20 cents per B channel per month for a total of $2.00.
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