Most residents in most municipalities do not even know about
the hidden tax known as “Franchise Fees” in fact some municipalities even go to
the ridiculous extreme of trying to claim it is not a tax. The quote below was
copied from one of these municipalities. Thanks to an awareness created within
our municipality over the last two years, the residents of the Crowsnest Pass
"Are franchise fees a tax? No. Franchise fees are simply
the cost utility and cable providers incur for being allowed to place their
facilities in the public's right-of-way. Franchise fees are considered a cost
of doing business. Franchise fees are an important component of a diversified
revenue stream for municipalities."
In 2010 the Municipality of Crowsnest Pass collected $295,551
in Franchise fees this number jumped to $374,288 in 2011, $569,749 in 2012 and was
originally budgeted to go to $906,694 in 2013 until the huge out cry by the
public. Which led to council having a change of heart and only increasing it to
$682,000 for 2013.
2011 increased by $79,000
2012 increased by $196,000
2013 increased by $112,000
2010-2013 increased by $387,000
That is correct in total the “Franchise Fee” increased by
$387,000 over those three years a whooping 130 % if these same dollars had been
generated by increasing taxes, it would have required additional tax increases
of 1.25% in 2011, 2.9% in 2012 and 1.75% in 2013.
Without the public out cry previously mentioned the Franchise
Fee would have risen by another $225,000 in 2013 the equivalent of another 3.5%
tax increase.
It would be very interesting to hear what position candidates
for the upcoming election will take on
Franchise Fees, would they agree that they have gone up more than enough in the
last three years? and commit to not increasing them for the next four years?
Note: Cost of administration $4325 per day
Note: Cost of administration $4325 per day
