Cost Recovery Surcharge & Va Personal Property Tax Recovery for IP Transit

Mon Jan 6 17:21:52 UTC 2020

Both are quite likely to be negotiable.

FCC Cost Recovery fees are the federally mandated ones they are allowed to
pass on to you. Most anything else named 'Cost Recovery' is optional, and
so named to try and confuse you into thinking it's the mandatory stuff.

"Property Tax Recovery" charges are also to my knowledge 100% optional
fees. It's the carrier charging you a fee so they can pay their property
taxes. Somehow, this sort of thing is legal.

On Mon, Jan 6, 2020 at 9:42 AM Siyuan Miao <aveline at misaka.io> wrote:

> NANOG,
>
> We've recently signed contract of colocation + IP transit with a local
> provider in Northern Virginia.
>
> Co-location services is okay but we found something unusual on our IP
> transit invoices.
>
> - Va Personal Property Tax Recovery (1.8%)
>
> - Cost Recovery Surcharge (3%)?
>
> We've talked with our providers but they told us:
>
> > we use a tax engine that provides the taxes/rates to our services. If
> you would like further language on them, please let me know and I will have
> some one send that over.
>
> Has anyone else ran into this? If this is a legit "surcharge"?
> Also, IP transit isn't a property, why is there a "Property Tax" for IP
> transit?
>
> Regards,
> Siyuan Miao
>
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