nasadude
join:2001-10-05
Rockville, MD | reply to pnh102
Re: Huh?
local is the operative word here, as in
"local governments have received 27.8 percent less across the board under the new system" |
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
 ·Comcast
| said by nasadude  :local is the operative word here, as in The summary clearly states that the state government has lost money too. Since the state now collects the franchise fees which would have gone to the local government, how can the state be "losing" money? The only explanation I can think of is if the state gave customers a break on franchise fees.
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Only SHATNER is Kirk. |
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marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO
| Well, on the local level, local municipalities have the burden of proving how much the franchisee has to pay. This normally aggressively pursuing records and essentially delivering a documented invoice to the cable company. The franchisees always submit an initial lower revenue level than they eventually agree to (which any company should be expected to do in the same situation).
I suspect the state is not being nearly as aggressive and just accepting the revenue figures submitted by the franchisees without double checking against subscriber numbers. While franchisees almost always count full revenue when collecting the franchise fee, they will take any feasible deduction when paying the fee.
That could easily result in a shortfall in the new system, though 25% seems awful high.
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