How are local franchising authorities, like city or county governments, compensated for allowing cable companies to use public rights-of-way?
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What is the Cable TV Franchise Tax?
Solution/Answer:
For those customers that receive cable television service, the FCC allows the local franchising authority (city or county government) to collect up to five percent of all revenues earned by a cable operator in exchange for consent to use right-of-ways and easements for the cable system’s construction and operation.
