Page 216 - Bedford-FY22-23 Budget

Franchise Fees & Other Taxes Summary

B4,206,000 $27,000
(0.65% vs. prior year)

Other Taxes Proposed and Historical Budget vs. Actual

$6M

$5M

$4M

$3M

$2M

$1M

$0
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Actual Budgeted Over Budget

Franchise taxes are collected from utilities and are fees charged for the continued use of public right-of-way.
The fee structure varies from a percentage of gross receipts to a unit fee based on the number of
connections within the city limits. Franchise taxes continue to be monitored closely due to the deregulation
of the telephone industry, signi cant uctuations in natural gas prices and implementation of electric
deregulation. Recent legislative changes on how telecommunication and cable industries pay franchise
taxes has resulted in a decrease in those revenue budgets. The City also maintains a cable channel, which is
funded by a 1% franchise tax from cable providers to support the government channel.

Hotel occupancy taxes are collected from each of the nine hotels within the City limits. The City hotel
occupancy tax rate is 7% of taxable receipts and revenues are submitted on a monthly basis. This revenue
source is the primary funding of the Tourism Fund. The anticipated revenue is the same as last year, but staff
is continually monitoring due to the effects of the pandemic on the industry.

The nal tax type in this category are Mixed Beverage taxes. Businesses with a mixed beverage permit must
collect and remit mixed beverage sales tax on each mixed beverage (distilled spirits, beer, ale, and wine) they
sell, prepare or serve. The mixed beverage sales tax rate is 8.25 percent of mixed beverages.

City of Bedford, TX | Adopted Budget FY 2023 Page 216