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Local Exchange Mapping Guidelines

Overview

Local exchange mapping requires special handling because more than one transaction/service combination is needed to generate all necessary rated and per line taxes. To capture all appropriate taxes, the following transaction/service combinations should be passed to AvaTax for Communications (AFC). For a complete description of all transaction and service pairs, see TM_00115_AFC Transaction and Service Types.

To simplify the process, the transactions have been broken into three separate categories:

  1. Rated Charges
  2. Per-Line Charges
  3. Invoice Charges

Transactions to Return Rated Charges

These transaction/service pairs should be sent into the system with the corresponding charge. The lines field should be set to zero.

Transactions to Return Rated Charges

  1. Local/Local Exchange (7/5)
  2. Local/FCC Subscriber Line Fee (7/20)
  3. Local/FCC Subscriber Line Charge Centrex (7/641)
  4. Local/FCC Subscriber Line Fee Multi Line (7/612)
  5. Local/LNP (Local Number Portability) (7/20)
  6. Local/Data (7/27)
  7. Local/Private Line (7/4)

Service Type

Description

(27) Data

Local data service charge, MRC, and other related service type charges and features.

(641) FCC Subscriber Line Charge Centrex

Charge for recovering the cost of connecting the Centrex customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary line charges. This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service.

(20) FCC Subscriber Line Fee

Charge for recovering the cost of connecting the customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary line charges. This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service.

(612) FCC Subscriber Line Fee Multi Line

Charge for recovering the cost of connecting a multi-line customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary charges. This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange for multi-line service.

(5) Local Exchange

Charges for monthly recurring charge, usage, local loop, local flat rates and other similar charges for local telecom service. This will also include dial tone and any applicable long- distance access line charges, or other local service related fees and charges, or other local service related fees and charges. (Does not include local feature charges.)

(20) Number Portability Recovery

Fixed, monthly charge through which local telephone companies may recover some the costs associated with providing local number portability service. This is not the LNP Administrative Fee.

(4) Private Line

Local private line service charge, MRC, and other related service type charges and features. (Charges are for a service in which the service originates at the customer’s premises and connects only to a designated termination location. No switching or access to other third-party lines. The private line will originate and terminate entirely within a single city. If the private line is charged on a basis of time and distance per call or used to make tolls calls outside of the local calling areas for a set periodic/flat fee charge, then the private line should be mapped as a toll, toll free, or WATS type of service.)

Options for Further Accuracy:

The following are transaction/service pair options that will ensure further accuracy

  1. Local/Customer Premise Equip Rental (7/625)
  2. Local/Local Feature Charge (7/30)
  3. Local/Late Charge (7/14)
  4. Other/PICC (3/46)
  5. Other/No Pick PICC (3/47)

Service Type

Description

(625) Customer Premise Equip Rental

Rental of equipment located at a subscriber’s premises that enable customers to access local communications services.

(14) Late Charge

Category for late charges that were originally taxed using one of the Local (07) transaction categories.

(30) Local Feature Charge

Charges and fees for additional feature charges of local exchange services. (Includes services such as call waiting, caller ID, call blocking, call forwarding, etc.)

(46) PICC

This combination should be used for the charge assessed by either a LEC or LD company for maintaining record of an end users of LD carrier.

(47) No Pick PCC

This combination should be used for the charge assessed by a LEC for maintaining record that end users choose not to declare an LD carrier. This combination will only return the necessary State Taxes.

Transactions to Return Per Line Charges

Not all the necessary telecom taxes are returned using transaction/service combinations that return rated charges. There exist per-line taxes, such as E911, that are returned using lines-based transactions. It is necessary to send all T/S pairs within one of the basic categories below depending on the service provided. Some jurisdictions assess per line taxes, such as E911, on the number of PBX, high capacity or Centrex trunks used. Others assess per-line taxes on the number of PBX, high capacity or Centrex DID Extensions. While others may assess based on the number of PBX, high capacity or Centrex channels.

Different taxes within the same jurisdiction may be assessed with different methods. (For example, the TRS may be assessed on the trunk, but the E911 on extensions.) Multiline services require three transactions (trunks, extensions and channels), to be passed into the system to ensure return of the proper taxation. The amount field for these transactions should be set to zero.

Line transactions fall into one of the following categories:

Lines

  1. Local/Lines (7/21)

High Capacity

  1. Local/High Capacity Trunk (7/45) –The Lines field of this transaction should be populated with the number of Trunks to be taxed.
  2. Local/High Capacity Outbound Channel (7/582) –The Lines field of this transaction should be populated with the number of Outbound Channels to be taxed.
  3. Local/High Capacity Extension (7/580) –The Lines field of this transaction should be populated with the number of Extensions to be taxed.

PBX

  1. Local/PBX Trunk (7/24) –The Lines field of this transaction should be populated with the number of Trunks to be taxed.
  2. Local/PBX Extensions (7/41) –The Lines field of this transaction should be populated with the number of Extensions to be taxed.
  3. Local/PBX Outbound Channel (7/566) –The Lines field of this transaction should be populated with the number of Outbound Channels to be taxed.

Centrex

  1. Local/Centrex Trunk (7/42) –The Lines field of this transaction should be populated with the number of Centrex trunks taxed.
  2. Local/Centrex DID Extensions (7/40) –The Lines field of this transaction should be populated with the number of Centrex extensions to be taxed.
  3. Local/Centrex Outbound Channel (7/587) –The Lines field of this transaction should be populated with the number of Outbound Channels to be taxed.

Service Type

Description

(21) Lines

Designates the number of lines a local service customer is using.

(45) High Capacity Trunk

Designates the number of High Capacity Trunks a customer is using. High Capacity Trunks are usually defined as T1 or greater.

(582) High Capacity Outbound Channel

Designates the number of outbound channels a local customer is using on a High Capacity Trunk.

(580) High Capacity Extension

Designates the number of extensions a local customer is using on a High Capacity Trunk. High Capacity Trunks are usually defined as T1 or greater.

(24) PBX Trunk

Designates the number of PBX Trunks a local service customer is using.

(566) PBX Outbound Channel

Designates the number of voice grade communications channels leaving a subscriber’s premises through a PBX connecting the subscriber’s premise to the public switch network.

(41) PBX Extension

Designates the number of PBX Extensions a local service customer is using.

(42) Centrex Trunk

Designates the number of Centrex trunks a local service customer is using.

(587) Centrex Outbound Channel

Designates the number of outbound channels a local service customer is using on a Centrex Trunk.

(40) Centrex DID Extension

Designates the number of Centrex/Direct Inward Dialing extensions a local service customer is using.

Transactions to Return Invoice Charges

To ensure that appropriate per invoice taxes are returned, users must submit one invoice transaction using service type 43- Invoice or 623- Centrex Invoice. This tax is based per invoice per account per billing cycle. Pass one transaction for each invoice issued. The charge and lines fields are irrelevant and must be set to zero.

Transactions for an Invoice Charge

  1. Local/Invoice (7/43)
  2. Local/Centrex Invoice (7/623)

Service Type

Description

(43) Invoice

Mapping category for transactions on a per invoice basis. Tax is based per invoice per account per billing cycle.

(623) Centrex Invoice

Mapping category for transactions on a per invoice basis. Tax is based on per invoice per account per billing cycle.

Bundle Transactions

Bundle service types should be used when local and non-local transactions are being submitted together. Local only transaction/service pairs will return the Federal Excise Tax. A bundled transaction does not return the Federal Excise Tax per IRS Notice 2006-50.

Service Type

Description

(91) Centrex Extension Bundle

Designates the number of Centrex/Direct Inward Dialing extensions a local service customer is using.

(588) Centrex Outbound Channel Bundle

Designates the number of outbound channels a local service customer is using on a Centrex Trunk.

(93) Centrex Trunk Bundle

Designates the number of Centrex trunks a local service customer is using.

(642) FCC Subscriber Line Charge Centrex Bundle

Charge for recovering the cost of connecting the Centrex customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per line caps for primary and secondary line charges. This charge is not a tax or governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service. This transaction is intended only for taxation of the Subscriber Line Fee (not the actual fees for Centrex services or the line counts on Centrex systems).

(86) FCC Subscriber Line Fee Bundle

Charge for recovering the cost of connecting the customer premise to the local phone network, of often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per line caps for primary and secondary line charges. This charge is not a tax or governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service.

(613) FCC Subscriber Line Fee Multi Line Bundle

Charge for recovering the cost of connecting a multi-line customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary charges. This charge is not a tax or a governmental assessment, but an authorized charge for the recover of cost for providing local exchange multi-line service.

(581) High Capacity Extension Bundle

Designates the number of extensions a local service customer is using on a High Capacity Trunk.

(583) High Capacity Outbound Channel Bundle

Designates the number of outbound channels a local service customer is using on a High Capacity Trunk.

(95) High Capacity Trunk Bundle

Designates the number of High Capacity Trunks a customer is using. High Capacity Trunks are usually defined as T1 or greater.

(94) Invoice Bundle

Mapping category for transactions on a per invoice basis.

(84) Late Charge Bundle

Category for late charges that were originally taxed using one of the Local (07) transaction categories associated with bundled transactions.

(85) Local Exchange Bundle

Charges for monthly recurring charge, usage, local loop, local flat rates and other similar charges for local telecom service. This will also include dial tone and any applicable long- distance access line charges, or other local service-related charges.

(90) Local Feature Charge Bundle

Charges and fees for additional feature charges of local exchange services. (Includes services such as call waiting, caller ID, call blocking, call forwarding, etc.)

(97) PICC Bundle

This combination should be used for the charge assessed by either a LEC or LD company for maintaining record of an end users choice of LD carrier. It will return the proper Federal taxes, such as USF, in addition to necessary State Taxes, such as Sales Tax.

(96) No Pick PICC Bundle

This combination should be used for the charge assessed by a LEC for maintaining record that end users choose not to declare an LD carrier. This combination will only return the necessary State Tax.

(92) PBX Extension Bundle

Designates the number of PBX extensions a local service customer is using.

(567) PBX Outbound Channel Bundle

Designates the number of voice grade communications channels leaving a subscriber’s premises through a PBX connecting the subscriber’s premises to the public switched network.

(89) PBX Trunk Bundle

Designates the number of PBX trunks a local service customer is using.

Populating Data

The data required for accurate taxation varies from service type to service type. The following chart lists which data to populate for each service type.

Service Type

Data

(4) Private Line

Amount, Minutes

(5) Local Exchange Services

Amount, Minutes

(14) Late Charge

Amount

(20) FCC Subscriber Line Fee; Number Portability Recovery

Amount

(21) Lines

Lines

(24) PBX/Trunk

Lines

(27) Data

Amount, Minutes

(30) Local Feature Charges

Amount

(40) Centrex DID Extension

Lines

(41) PBX Extension

Lines

(42) Centrex Trunk

Lines

(43) Invoice

Amount

(45) High Capacity Trunk

Lines

(84) Late Charge Bundle

Amount

(85) Local Exchange Bundle

Amount, Minutes

(86) FCC Subscriber Line Fee Bundle; Number Portability Recovery Bundle

Amount, Minutes

(87) Lines Bundle

Lines

(89) PBX Trunk Bundle

Lines

(90) Local Feature Charge Bundle

Amount

(91) Centrex Extension Bundle

Lines

(92) PBX Extension Bundle

Lines

(93) Centrex Trunk Bundle

Lines

(94) Invoice Bundle

Amount

(95) High Capacity Trunk Bundle

Lines

(566) PBX Outbound Channel

Lines

(567) PBX Outbound Channel Bundle

Lines

(580) High Capacity Extension

Lines

(581) High Capacity Extension Bundle

Lines

(582) High Capacity Outbound Channel

Lines

(583) High Capacity Outbound Channel Bundle

Lines

(587) Centrex Outbound Channel

Lines

(588) Centrex Outbound Channel Bundle

Lines

(612) FCC Subscriber Line Fee Multi Line

Amount

(613) FCC Subscriber Line Fee Multi Line Bundle

Amount

(623) Centrex Invoice

Amount

(625) Customer Premise Equip Rental

Amount

(641) FCC Subscriber Line Charge Centrex

Amount

(642) FCC Subscriber Line Charge Centrex Bundle

Amount

For more information please submit a support case.

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