What is the franchise fee for a cable company?
(a) The holder of a state-issued certificate of franchise authority shall pay each municipality in which it provides cable service or video service a franchise fee of five percent based upon the definition of gross revenues as set forth in this chapter.
Why does Comcast charge a franchise fee?
Franchise Fee Franchise fees are paid to local governments as compensation for Comcast's use of the public rights-of-way and easements. The Federal Cable Act authorizes cable operators to collect from customers the full amount of franchise fees paid to local governments.
Do cable companies pay taxes on phone service?
If you have mobile phone service bundled with your cable, you'll also pay a 3 percent excise tax levied by the Federal Communications Commission. Cable companies must also pay fees to local authorities for the privilege of operating a cable franchise in the area. A franchise fee is passed directly on to cable consumers, as are local sales taxes.
What is a franchise fee?
FRANCHISE FEE. (a) The holder of a state-issued certificate of franchise authority shall pay each municipality in which it provides cable service or video service a franchise fee of five percent based upon the definition of gross revenues as set forth in this chapter.
What is a cable franchise fee?
How many categories of franchise fees are there?
How long does a franchise fee last?
What is exclusive compensation?
What is the maximum amount of revenue a municipality can receive from cable?
Is the franchise fee on cable bill a tax?
Is the cable fee a tax increase?
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How do cable franchises work?
Cable franchise agreements provide the franchisee the right to construct, install, maintain and operate a cable system on County Public Rights-of-Way in exchange for the franchisee's promise to provide cable service to residents of the County.
What is a franchise in cable?
In the United States cable television industry, a cable television franchise fee is an annual fee charged by a local government to a private cable television company as compensation for using public property it owns as right-of-way for its cable lines.
Does a cable station need a franchise from the local government?
Under the Cable Communications Policy Act of 1984 (Cable Act), cable operators must obtain franchises from state or local franchising authorities, and these authorities may continue to condition franchises on various requirements.
Are there taxes on streaming services?
More than half the states and dozens of cities now levy taxes or fees on digital streaming services such as Netflix and Hulu, aiming to recoup the revenue they lose when people cut the cable cord. Cable customers pay sales taxes and a variety of other taxes and fees imposed by state and local governments.
What is a local franchise fee?
Local governments typically charge private utility companies for the use of public rights-of-way. This fee functions to offset the company's expense for these charges, as allowed by law.
What is the role of a franchise authority?
A franchising authority is the local municipal, county or other government organization that regulates certain aspects of the cable television industry at the state or local level.
How do cable companies get their channels?
Cable companies offer a lot of channels, but how do they pay for them? Cable companies pay each network owner for each household receiving the signal for a given network. You make the payment irrespective of whether any of the families watch the programs from that channel or not.
Are cable companies required to provide local channels?
Must-carry rules, first instituted by the Federal Communications Commission (FCC) in 1965, require cable systems to carry local broadcast television stations.
Are cable channels licensed by the FCC?
In 1972, new rules regarding cable television became effective. These rules required cable television operators to obtain a certificate of compliance from the Commission prior to operating a cable television system or adding a television broadcast signal.
Does Netflix have tax?
The Netflix advertised price does not include sales tax. If sales tax applies, it is listed separately on your monthly invoice. Your Netflix membership may be subject to sales tax in some states (governed by your state's sales tax laws) because your membership includes streaming and games.
Is Netflix a tax deduction?
Even services like Netflix and software can be deducted as long as you prove that it's needed to stay relevant in your industry. As a rule of thumb, don't try to fool the IRS. But, if you keep a written log that details that you do use hardware and software for work too, you claim the business percentage.
Does YouTube TV have tax?
As a YouTube TV member, you may see sales or communications taxes on your YouTube TV monthly bill, depending on local tax laws in your location. Tax rates and types can vary by state, territory, or city, and are based on current rates at the time of your monthly charge.
Why am I paying a franchise fee on my cable bill?
Franchise Fee Franchise fees are paid to local governments as compensation for Comcast's use of the public rights-of-way and easements. The Federal Cable Act authorizes cable operators to collect from customers the full amount of franchise fees paid to local governments.
Why did the FCC create must carry rules?
These rules were originally designed to protect the local stations, which were competing with cable networks for a limited number of cable channels, from losing market shares. Since their inception, some must-carry rules have been found to be constitutional while others have not.
CABLE FRANCHISE FEES | Federal Communications Commission
Full Title: CABLE FRANCHISE FEES Document Type(s): Memorandum Opinion and Order Bureau(s): Managing Director, Cable Services Description: Ordered that cable operators may "pass through" on customer bills the underpayment of franchise fee charges assessed for the period from April 6, 1995 to July 31, 1997 that resulted from the cable
Broadcast TV Fee $ 19.45 and Regional Sport Fee $ 10.75.
I signed a new 2 year contract, had them look into a plan that did not have sport fees, I sign a agreement that stated that my bill would be a certain amount and no sports fee was included but there was the broadcast fee, taxes, a fee for 1 cable box and the triple play plan...
What is and the Purpose for a Cable Television Franchise Fee ...
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What is a cable franchise fee?
In the United States cable television industry, a cable television franchise fee is an annual fee charged by a local government to a private cable television company as compensation for using public property it owns as right-of-way for its cable. In the US, cable television services are provided by private for-profit companies, ...
How many categories of franchise fees are there?
Justifications or rationales for the franchise fee fall into six basic categories:
How long does a franchise fee last?
It can be renegotiated when the franchise agreement comes up for renewal, usually at intervals of 10 to 12 years. Although it is paid to a government, it is not ...
What is exclusive compensation?
Exclusivity - compensation to the government for allowing the cable operator to maintain a de facto monopoly on cable service in the area.
What is the maximum amount of revenue a municipality can receive from cable?
Section 622, states that municipalities are entitled to a maximum of 5% of gross revenues derived from the operation of the cable system for the provision of cable services such as Public, educational, and government access (PEG) TV channels.
Is the franchise fee on cable bill a tax?
If it just appeared on accounting statements as a lump sum payment by the cable provider, it would be perceived by the public more as a fee-for-service, which is how governments regard it. However, the Communications Act provides the transparency of the franchise fee so that customers of the cable company understand the fee imposed by the government upon the cable company.
Is the cable fee a tax increase?
Cable providers, in contrast, see the fee as a cost of doing business which they are passing along to the customer. By listing on their bill the portion attributable to the fee, customers may feel that government is responsible for that portion, not the cable provider. Also, since customers will immediately notice any increase in the fee, and may interpret it as a "tax increase", listing it on the bill may discourage governments from pushing for an increase in the fee when the franchise agreement is renewed.
How often does the government adjust the charge?
The government adjusts the charge every quarter; the law does not require carriers to pass on the charge to customers, but they may do so at either a flat rate or as a percentage of the monthly bill.
What is universal service charge?
The federal government levies a "Universal Service" charge on telecommunications and cable providers, figuring the total charge as a percentage of the provider revenues.
Can you deduct state sales tax?
The IRS allows you to deduct state sales taxes, either by listing the actual tax amount or by using optional sales tax tables provided by the IRS. In addition, if you use cable TV in your business, you can deduct that portion of the bill that you can apportion to business use. Stock traders, for example, may deduct the cost ...
Is a franchise fee a local tax?
A franchise fee is passed directly on to cable consumers, as are local sales taxes. By federal law, satellite TV providers are exempt from franchise fees and local sales taxes, but must collect sales taxes if the state mandates them.
Do you pay a monthly fee for local cable?
If you get local cable television service, you pay a monthly subscriber fee, but the charges don't stop there: Your bill will also break out federal, state and local taxes; the exact amount of each varies from one locality to the next.
Do you pay taxes on 911?
The individual states levy sales taxes on goods and services, which the cable providers pass on to consumers. In addition, the state or locality may charge a 911 fee to support emergency services, or levy a separate tax on cable services. If you have mobile phone service bundled with your cable, you'll also pay a 3 percent excise tax levied by the Federal Communications Commission.
What is cable franchise?
These charges are called franchise fees. A franchise is a charge for the privilege of physically occupying the municipality's streets ...
What is a franchise fee?
These charges are called franchise fees. A franchise is a charge for the privilege of physically occupying the municipality's streets and rights of way. Franchises are customarily granted in exchange for an annual fee to place telephone, electric, gas, fiber optic and cable television lines in streets or on public property. The fee is not a tax.
What are some examples of municipal fees?
For example, the municipality may impose permit fees, inspection fees, or encroachment fees on construction or improvements, even if it occurs within the public right of way. Municipalities may regulate and charge for the use of municipal fixtures and improvements — for example, attachment fees for the use of municipally owned poles, or mast arms, or leases for the use of water tanks .
How much is a franchise fee in a municipality?
Traditionally, municipalities charged private parties a franchise fee equal to 3% to 5% of the gross income generated by the activity occupying and using the public property or rights of way within the municipality.
Does the municipality charge for a PEG?
The municipality may not charge any other permit, inspection, or encroachment fee beyond the franchise fee. It may still reserve a right to access one or more "PEG" channels (public, educational or governmental), but must bear all operational costs of providing local access programming.
Does a municipality require a franchise agreement?
The municipality may still require a franchise agreement, and may regulate the terms and conditions on which occupation and work occur.
Do SC municipalities have to have a franchise fee?
First, for all existing local franchises, municipalities should establish a franchise fee rate for such cable service providers upon expiration or termination of the existing franchise with the municipality. Most municipalities did so after the passage of the Competitive Cable Services Act, but it is prudent to check that such an ordinance was adopted and remains in.
What is the Federal Cable Act?
The Federal Cable Act authorizes cable operators to collect from customers the full amount of franchise fees paid to local governments. Some local governments impose this tax on users of certain communications and/or video services.
What is broadcast TV fee?
The Broadcast TV Fee is an itemized charge that you'll see on your bill. This charge is not a government-mandated fee and will increase from time to time. It is based on our costs of providing the local broadcast stations that we carry on our cable systems in each area. These costs include the fees that the broadcast stations charge us to carry them on our cable systems, which are among our largest increasing costs. The Broadcast TV Fee is not included as a part of our promotional pricing or pricing under your minimum-term agreement and can increase during your promotion or minimum-term. You'll receive advance notice before an increase takes effect.
What is regional sports network fee?
The Regional Sports Network Fee is an itemized charge that you'll see on your bill. This charge is not a government-mandated fee and will increase from time to time. It's based on our costs of providing the regional sports networks that we carry on our cable systems in each area. These costs include the fees that regional sports networks charge us to carry them on our cable systems, which are among our largest increasing costs. The Regional Sports Network Fee is not included in our promotional pricing or pricing under your minimum-term agreement and can increase during your promotion or minimum-term. You'll receive advance notice before an increase takes effect.
What happens to rental fees when promotion ends?
This rental fee may change from time to time, and you will receive advance notice before an increase takes effect. State Universal Service Fund.
Is regional sports network fee included in promotional pricing?
The Regional Sports Network Fee is not included in our promotional pricing or pricing under your minimum-term agreement and can increase during your promotion or minimum-term. You'll receive advance notice before an increase takes effect. Regulatory Cost Recovery.
Does Xfinity charge for rental equipment?
If you rent your TV Box, modem or voice equipment from Xfinity, you may see a separate line item on your monthly bill. Your equipment rental fee could be included in your service charge or be provided as part of a promotion, in which case you may not see a separate charge for that equipment. However, depending on your package, we may charge separately for the equipment. If you are receiving equipment under a promotion, you will be charged the rental fee for that equipment when your promotion ends. This rental fee may change from time to time, and you will receive advance notice before an increase takes effect.
Does sales tax vary by state?
Sales tax varies by state, and in some states, it may vary by locality.
What is a cable franchise fee?
In the United States cable television industry, a cable television franchise fee is an annual fee charged by a local government to a private cable television company as compensation for using public property it owns as right-of-way for its cable. In the US, cable television services are provided by private for-profit companies, ...
How many categories of franchise fees are there?
Justifications or rationales for the franchise fee fall into six basic categories:
How long does a franchise fee last?
It can be renegotiated when the franchise agreement comes up for renewal, usually at intervals of 10 to 12 years. Although it is paid to a government, it is not ...
What is exclusive compensation?
Exclusivity - compensation to the government for allowing the cable operator to maintain a de facto monopoly on cable service in the area.
What is the maximum amount of revenue a municipality can receive from cable?
Section 622, states that municipalities are entitled to a maximum of 5% of gross revenues derived from the operation of the cable system for the provision of cable services such as Public, educational, and government access (PEG) TV channels.
Is the franchise fee on cable bill a tax?
If it just appeared on accounting statements as a lump sum payment by the cable provider, it would be perceived by the public more as a fee-for-service, which is how governments regard it. However, the Communications Act provides the transparency of the franchise fee so that customers of the cable company understand the fee imposed by the government upon the cable company.
Is the cable fee a tax increase?
Cable providers, in contrast, see the fee as a cost of doing business which they are passing along to the customer. By listing on their bill the portion attributable to the fee, customers may feel that government is responsible for that portion, not the cable provider. Also, since customers will immediately notice any increase in the fee, and may interpret it as a "tax increase", listing it on the bill may discourage governments from pushing for an increase in the fee when the franchise agreement is renewed.
