Peachtree City is considering ways to offset decreases in revenue from cable franchise fees.
The current 4 percent tax on cable services generates about $475,000 a year, but that is projected to fall to $420,000 next year as the number of cable customers declines in favor of broadband services. As Financial Services Director Paul Salvatore explained at the May 3 City Council meeting, a federal moratorium on new state and local Internet taxes remains in effect. However, Peachtree City is one of only two Georgia cities that taxes cable companies at 4 percent instead of 5 percent, so raising the rate is an option that would boost revenue by about $124,000 annually. As more fiber optic utilities are installed in the city’s right-of-way, new franchise agreements that reimburse the city for ROW maintenance may also be implemented.
The council did not take any action, but is pursuing the one percent rate increase, which must be submitted to the state.