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What are franchise fees and taxes?

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What are franchise fees and taxes?

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The Franchise Fee is a fee that cable companies pay to a government regulatory agency for placement of cable lines and to provide cable TV service to customers residing in that community. Federal cable legislation allows cable companies to pass this fee on to its customers. Standard city, count or state taxes vary by areas and are mandated by the government regulatory agency. The tax amount may change and is based on your service and equipment. The FCC tax is paid to the Federal Communications Commission.

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