Taxes & Fees | Midco Account & Billing Support

Taxes & Fees

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Understanding Taxes & Fees 

Midco billing statements include some taxes and fees that vary based on a customer’s local area and services. Some taxes and fees also apply if you’ve paused some of your services to go on the vacation plan. Here’s an overview to help you understand more.

Residential Access Line Charge
This charge is related to phone services, and is authorized by the Federal Communications Commission (FCC) for providing access to and maintenance of the local network.

Local Broadcast Retransmission Fee
Cable TV customers may see this fee on their statements. Local broadcast networks charge the Local Broadcast Retransmission Fee to cable and satellite customers for access to their signal. The U.S. Congress has authorized broadcast stations, such as ABC, NBC, CBS and FOX, to provide consent (grant or deny permission) for cable operators to retransmit the signal to customers. This agreement is typically renegotiated every three years.

In accordance with this law, Midco is required to obtain retransmission consent from various local broadcasters. The Federal Communications Act prohibits cable operators and other video programming distributors from retransmitting broadcast signals without first obtaining each broadcaster’s consent.

Obtaining the required consent from all of the broadcasters comes at a cost, which is reflected as the Local Broadcast Retransmission Fee on the customer's statement in the Taxes, Surcharges & Fees section.

Local Number Portability
The Federal Communications Commission permits telephone companies to add this charge to all phone lines as compensation for creating systems which allow residential and business telephone customers the ability to retain, at the same location, their existing local telephone numbers when switching from one local telephone service to another.

Hearing Impaired Surcharge
State government imposes this monthly charge, which helps to provide telephone services to the hearing impaired.

Franchise Fee
Local governments set this fee percentage, which is related to those governments allowing Midco to use public rights of way and the right to operate a cable system in that community. This fee is subject to change by local governments.

Local, State and Federal Taxes
This is the amount of your state and federal taxes which varies by your location. For all companies providing telephone service, this percentage is the same at the state and federal level. Other taxes vary by location and could apply to various services. These taxes are subject to change by the taxing authorities at any time.

Federal Universal Service Fund
This supports telecommunication needs of consumers in low-income households, schools, libraries and rural healthcare providers. This charge appears on statements for phone customers.

Gross Receipts Tax

  • South Dakota: This tax is on gross receipts derived from the furnishing of telephone services at the rate of 2.5%. The service provider collects the tax and reports the collections annually to the Department of Revenue.
  • North Dakota: Tax is on gross receipts derived from the furnishing of telephone services at the rate of 4%. The service provider collects the tax and reports the collections annually to the Department of Revenue.

Federal Excise Tax
These taxes mandated by the federal government are imposed on local and wireless telephone services.

Carrier Connect Assessment 
All carriers providing interstate telecommunications must support relay services, which enables telephone conversations between people with speech/hearing impairments and those without. This does not reflect a direct government charge.

Late Fees
Payments are expected to be received on or before your statement due date. Payment in full must be received to avoid a late fee assessment of $10 on your next statement. When customers subscribe to Midco’s service, they agree that the amount of the late fee is not disproportionate to any anticipated damages to Midco caused by the customer’s non-payment or from the payment of less than the full amount due. For further information, view Midco’s Annual Notice.

County Government 911 Emergency Surcharge
State or local governments mandate this surcharge through their telecommunications provider to help pay for emergency services such as fire and rescue. This surcharge applies to phone services.

Paper Bill Fee
If you prefer to receive paper statements, there is a recurring $1 monthly service fee added to your statement. This helps to cover the printing and mailing costs associated with paper bills. You can switch to paperless billing at any time.

The following one-time fees may be applied to your account for the following. Fees are subject to change.

  • Professional installation: $100
  • Self-installation kit: $15
  • Cable or data outlet installation: $50 
  • Extra outlets added: $25 each
  • Late charges (monthly): $10
  • Equipment pick up: $25 
  • Additional charges: Taxes and fees may vary as reflected in your first statement. Universal Service Funds and Excise Tax charges and fees may decrease with your new Midco phone charges.

We�ve confirmed your scheduled account service transfer.

In addition to transferring your services, we�re also moving any payment methods and/or auto pay settings to your new account number.

Billing access will be available four days after your services are activated at your new address.

If you need to make an immediate payment, please call us at 1.800.888.1300.