Court Rules Against Iowa Cities Over Franchise Fees

COURT RULES AGAINST IOWA CITIES OVER FRANCHISE FEES
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
A Scott County (Iowa) judge ruled that the cities of Davenport and Bettendorf are illegally handling the franchise fees they collect. Those cities have been placing the fees they collect from cable customers, via their cable operator, in city general funds. The judge ruled that if there is money collected beyond the cost to inspect, license, supervise or otherwise regulate cable, then the overage represents a tax levy, a category forbidden by state law.
http://www.multichannel.com/article/CA6437501.html