FCC Announces Regulatory Fees Due for FY 2014

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The FCC has released its annual Report and Order showing the regulatory fees due for the 2014 fiscal year. The due date is Sept. 23, 2014. The fees are intended to recover the Commission's cost of operations, estimated to be nearly $340 million, which is the same amount attempted to be collected as last year. The FCC will not be mailing out any notices of fees due, so companies must log in to view and pay their invoice. Fees paid even one day late will be subject to a 25 percent penalty plus administrative processing charges, so timely payment is critical.

For most services, fees are based on FCC licenses and permits held as of Oct. 1, 2013 (the first day of the 2014 fiscal year), although cable TV rates are based on the number of basic subscribers as of Dec. 31, 2013, and telecommunications and interconnected VoIP services are assessed 0.343% of 2013 calendar year interstate telecommunications revenues reported on Form 499-A. Where there has been a subsequent assignment or transfer of control, fees are to be paid by the current permittee or licensee as of the payment due date this month. Noncommercial stations and all nonprofit entities are exempt from paying regulatory fees.

The primary change from last year’s fees is that the FCC no longer charges more for VHF stations than for UHF stations, a distinction that became obsolete with the advent of digital TV. As a result, UHF licensees will see their fees increase while VHF licensees will see a corresponding decrease in regulatory fees owed. Also, cable TV fees have decreased by three cents per subscriber, from $1.02 to $0.99 per sub. The FCC also announced that, effective in 2015, it will impose a new regulatory fee on RespOrgs for each U.S. toll-free number they manage. Another significant change from last year is that the FCC no longer accepts checks in payment of regulatory fees. All fee payments must now be made electronically. Finally, beginning next year (FY 2015), the FCC will no longer be collecting regulatory fees for broadcast auxiliary stations.

Although a summary of fees is shown below, the FCC website  contains links to more information about the fees owed, including fees for services not mentioned below. Unlike the IRS which uses the mailing date to determine timeliness, the FCC requires regulatory fees to be received by the due date to avoid late payment penalties. Licensees or permittees that fail to pay their regulatory fees in full will not be able to get FCC action on any subsequently filed applications pursuant to the Commission's "red light" policy until all fees and penalties are paid.

BROADCAST SERVICES

AM and FM Radio

FY 2014 RADIO STATION REGULATORY FEES

Population

Served

AM Class A

AM Class B

AM Class C

AM Class D

FM Classes

A, B1 & C3

FM Classes

B, C, C0, C1 & C2

<=25,000

$775

$645

$590

$670

$750

$925

25,001 – 75,000

$1,550

$1,300

$900

$1,000

$1,500

$1,625

75,001 – 150,000

$2,325

$1,625

$1,200

$1,675

$2,050

$3,000

150,001 – 500,000

$3,475

$2,750

$1,800

$2,025

$3,175

$3,925

500,001 – 1,200,000

$5,025

$4,225

$3,000

$3,375

$5,050

$5,775

1,200,001 – 3,000,00

$7,750

$6,500

$4,500

$5,400

$8,250

$9,250

>3,000,000

$9,300

$7,800

$5,700

$6,750

$10,500

$12,025

 

AM Construction Permits

$590

 

FM Construction Permits

$750

 

                 

Digital Television

The FCC has eliminated the distinction between VHF and UHF for digital TV regulatory fees, as follows:

 

Fee Category

Annual Regulatory Fee

Digital TV (47 CFR part 73) VHF and UHF Commercial

 

            Markets 1-10    

$44,650

            Markets 11-25

$42,100

            Markets 26-50 

$26,975

            Markets 51-100 

$15,600

            Remaining Markets

$4,750

            Construction Permits

$4,750

LPTV, TV Translator & TV Booster             $410 per license (unchanged)

Broadcast Auxiliary Stations (final year) $10 per call sign (2013 = $10)

Broadband Radio (MDS/MMDS) & LMDS     $715 per call sign (2013 = $510)

CABLE SERVICES

Cable Television Systems                          99¢ per subscriber (2013 = $1.02)

Cable Antenna Relay Service (CARS)         $605 (2013 = $510)

WIRELESS SERVICES

CMRS Mobile/Cellular Services                  18¢ per unit (unchanged)

CMRS Messaging Services                          8¢ per unit (unchanged)

Microwave (includes Domestic Public Fixed Radio)
Microwave licensees must pay a $15 annual regulatory fee per year, payable for an entire ten-year license term at the time of application for a new, renewal or reinstatement license. The total regulatory fee due is $150 for the ten-year license term. (2013 = $20 annual regulatory fee per year, total regulatory fee was $200)

INTERNATIONAL SERVICES

Earth Stations                                             $295 (2013 = $275)
NO FEE FOR RECEIVE-ONLY EARTH STATIONS

Licensees and permittees will be able to pay by wire, online ACH payment or online credit card, although all payers will need an FCC Registration Number (FRN) and a completed "Fee Filer Form" 159-E prior to filing. As noted above, the FCC has discontinued accepting checks and paper filings as of Oct. 1, 2013.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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