Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Property Tax Annotations


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P

660.0000 POSSESSORY INTEREST

Annotation 660.0034

660.0034 Cable Television Franchise Fee. Section 107.7 does not require that the assessor use a portion of the franchise fee as the estimated economic rent for a cable system taxable possessory interest. Subdivision (b)(2) provides that the annual rent must be either (1) that portion of the franchise fee received by the franchising authority that is determined to be payment for the cable television possessory interest or (2) the appropriate economic rent. If the assessor does not use a portion of the franchise fee as the economic rent, the resulting assessment does not benefit from any presumption of correctness.

Other than that provided in section 107.7, there is no legal connection between the franchise fee and the economic rent for a cable system taxable possessory interest. The federal limit on cable television franchise fees does not establish a limit on the economic rent of a cable system taxable possessory interest. Similarly, neither does the state limit on such fees establish a limit on the economic rent.

In addition, a cable television franchise fee is not an enforceable land use restriction under section 402.1. Section 402.1(a) requires an assessor to consider the effect upon value of any enforceable restriction to which the use of the land may be subjected. The federal and state limits on cable television franchise fees are limits upon amounts which may be charged for cable television franchises, not restrictions to which uses of lands are subjected. C 7/13/2005.