Local Franchise Tax or Fees Explained
Local governments typically charge private utility companies for the use of public rights-of-way. This fee functions to offset the company's expense, as allowed by law.
What is it?
It is a legislatively mandated method of compensating municipalities for the use of public rights-of-way by telecommunications providers. Prior to opening to competitive market, this issue was accomplished by a mutual agreement between the municipality and the utility. It is a flat rate per access line.
Who gets the money?
Also known as:
- Local License Fee
- State Communications Service Tax
- Franchise Fee
- Franchise Tax
- Business and Occupation Tax