Taxes and Fees
When you purchase an Ooma device,you’ll save a lot of money every month since your telephone service includes unlimited domestic calling. It is important to remember that regardless of the phone plan you choose, you are responsible for paying the applicable taxes and fees in your area. For most customers, these taxes and fees are a nominal amount.
- Why do I need to pay taxes and fees for Ooma?
- Do I need to pay any other additional fees for service?
- How much should I expect to pay each year in taxes and fees?
- How can I check in My Ooma to see what I will owe in taxes and fees?
- Where does my money go?
- Are taxes and fees subject to change?
- Will the taxes and fees change if I move?
- What if I purchase a used or refurbished unit? What will I have to pay?
Why do I need to pay taxes and fees for Ooma?
Telecommunication is a highly regulated industry and subject to laws, guidelines, and taxation at the city, county, state or province and federal levels. Ooma charges applicable taxes and fees so we can operate within and comply with laws and regulations mandated by the government. Taxes and fees are split into the following categories:
- Regulatory Compliance Fee
- 911 Service Fee
- Federal Universal Service Charge (U.S. customers only)
- State or province and local taxes, fees and surcharges
Do I need to pay any other additional fees for service?
Ooma does offer some optional premium services such as international calling, 411, and Ooma Premier subscriptions. These services are charged separately from your monthly taxes and fees.
How much should I expect to pay each year in taxes and fees?
You can use our tax calculator to determine how much you will need to pay each month in taxes and fees.
How can I check in My Ooma to see what I will owe in taxes and fees?
You can check what taxes and fees schedule apply to your account by navigating to Services under the Account tab in My Ooma.
Where does my money go?
For U.S. customers, Ooma taxes and fees are broken down into the following categories:
- Regulatory Compliance Fee - Ooma uses this fee to recover certain of our costs associated with compliance with regulatory, legal and tax requirements and includes:
- Fees Ooma is required to pay to support the TRS fund, which supports facilities and services used to provide telecommunications services for individuals with hearing or speech disabilities
- Annual regulatory fees assessed on Ooma by the Federal Communications Commission
- Costs Ooma incurs administering, billing, collecting and making required tax and regulatory filings
- Regulatory surcharges Ooma pays to the providers of telecommunications that Ooma uses to provide its services
- 911 Service Fee - Ooma uses this fee to recover its costs of providing 911 service for Ooma customers as required by Federal Communications Commission regulations.
- Federal Universal Service Charge - Ooma uses this fee to recover contributions Ooma is required to make to the federal Universal Service Fund, which provides support to promote access to telecommunications services at reasonable rates for those living in rural and high-cost areas, income-eligible consumers, rural health care facilities, and schools and libraries.
- State and local taxes, fees and surcharges - These taxes, fees or charges are imposed by state, local, and municipal governments including charges imposed by local governments to help pay for emergency services such as fire and rescue.
For Canadian customers, Ooma taxes and fees are broken down into the following categories:
- Regulatory Compliance Fee - Ooma uses this fee to recover certain of costs required for or associated with compliance with regulatory, legal and tax requirements and includes in the fee:
- Costs Ooma incurs in administering, billing, collecting and making required tax and regulatory filings
- Regulatory surcharges Ooma pays to the providers of telecommunications that Ooma uses to provide its services
- Any regulatory payments and contributions Ooma is required to make pursuant to regulations of the Canadian Radio-television and Telecommunications Commission. The regulatory compliance fee may include costs incurred in prior years that are still being fully recovered. The fee and components used to calculate the fee are subject to change as fees and costs of complying with regulatory obligations change and the Canada/U.S. exchange rate fluctuates.
- 911 Service Fee - Ooma is required by the Canadian Radio-television and Telecommunications Commission to provide 911 service to Ooma customers. This fee recovers Ooma’s costs of providing 911 service and related expenses.
- Province and local taxes, fees and surcharges - Taxes, fees or charges imposed by provincial, local and municipal governments that Ooma is required by law to collect.
Are taxes and fees subject to change?
Telecommunication is a highly regulated industry and subject to laws, regulation and taxation at the city, county, state and federal levels. Since these taxes, laws and regulation are constantly evolving, the applicable taxes and fees in your jurisdiction is subject to change. Please see our tax calculator for the current taxes and fees schedule for your area.
Will the taxes and fees change if I move?
Your monthly taxes and fees are calculated based on the 911 address you have on file. Therefore, if you move to a new address in a different city it is possible that your monthly taxes and fees may differ from what you were paying at your previous address.
What if I purchase a used or refurbished unit? What will I have to pay?
Used and refurbished units are subject to the taxes and fees. You may wish to read the FAQ about used Ooma units and the FAQ about refurbished Ooma units for more information.