Page 214 - Bedford-FY24-25 Budget

Franchise Fees & Other Taxes Summary

A4,483,000 $10,000
(0.22% vs. prior year)

Franchise Fees & Other Taxes Historical Actual vs. Budget
5M

4M

3M

2M

1M

0
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Actual Budgeted

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 have 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 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 2024-2025 Page 214