Federal & Local Communications & Utility Taxes

Federal & Local Communications & Utility Taxes

February 26, 2014

The University is exempt from federal and local communications and utility taxes charged by telephone, cell phone and utility service providers. This exemption applies to the following taxes:

  • Federal communications excise tax (FCET)
  • Los Angeles city utility tax (LACUT)
  • Utility tax for cities other than Los Angeles

New Accounts 

The exemptions apply to accounts that are in the University’s name. When establishing new communications and utility accounts, departments should inform the service provider that the University is exempt from the taxes listed above because it is a California state government entity and a nonprofit educational institution.

Existing Accounts 

Departments should also review their existing communications and utility bills carefully to ensure that the University is not being charged for the taxes listed above.

Additional Information 

For additional information on these taxes, including how departments can establish the tax-exempt status for new communications and utility accounts, correct the tax status of existing accounts, and obtain a refund of taxes previously paid in error, see the links under Related Information.

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