Iowa Judge Nixes New Fees

IOWA JUDGE NIXES NEW FEES
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
A Polk County, Iowa, judge has struck down a portion of the state’s newly minted state franchising bill, asserting that a clause retroactively allowing cities to collect franchise fees in excess of the actual cost of regulation is unconstitutional. District Court Judge Michael Huppert made the ruling in one of seven lawsuits filed by individuals against Iowa cities, challenging the amount of franchise fees collected. The lawsuits against Des Moines, Davenport, Bettendorf, Cedar Rapids, Dubuque, Sioux City and Waterloo, were filed last September. The plaintiffs contend that franchise fees, charged at a rate of 5% of an operator’s gross revenues but paid by consumers, are an illegal tax under state law because they exceed the actual cost of regulation.
http://www.multichannel.com/article/CA6487824.html