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New York Court Rules FUSF Fees Taxable in Bundled Wireless Plans by T-Mobile

  • New York ruled that Federal Universal Service Fund fees are taxable when included in bundled wireless plans.
  • The decision was made by the New York Division of Tax Appeals in August 2025.
  • T-Mobile argued that these fees should not be taxable, referencing federal rules and similar cases.
  • The judge decided that FUSF fees are part of the total taxable receipt in bundled services.
  • The ruling differs from a recent decision on VoIP services where certain fees were nontaxable.
  • This decision confirms that mobile providers cannot separate FUSF fees to avoid taxes in New York.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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