Thursday, February 23, 2012

Bowmanstown, Pa., may levy cable TV tax to fund road repairs.

By Bob Laylo, The Morning Call, Allentown, Pa. Knight Ridder/Tribune Business News

Sep. 23--Bowmanstown Borough Council is considering enacting a 5-percent tax on cable television service that would generate about $7,000 a year.

"The borough has limited income," said Lew Markley, Budget and Finance Committee chairman. "Rather than raise property taxes, this would give us a good source of income."

Markley said the television tax would be equal to a half-mill of property tax. Council raised property taxes last year by 2 mills to 8.0049 mills.

Markley said the money could be used to repair borough roads.

Council will consider enacting the tax when it meets at 7 p.m. Oct. 5.

Markley said there will be complaints.

"There are some people who are opposed to it," he said.

Blue Ridge Communications Cable, which serves the borough, has an 80-channel package that costs about $42 a month, so the tax would cost the subscriber about more $2.10 a month.

People who have premium channels, such as HBO or digital cable, pay more. Markley said his premium and digital package costs $75 a month, so he would pay $3.75 more a month.

Markley said he has discussed the tax with Blue Ridge, which has not objected. It is the only cable company servicing the borough.

Calls to Blue Ridge were referred to General Manager Mark Masenheimer, who didn't respond to messages left Wednesday.

Borough officials pointed out that neighboring East Penn and Lower Towamensing townships have enacted such a tax.

Tamaqua also charges the tax, and plans to levy a 5-percent franchise fee against NuNet Inc., a company that plans to run fiber optics throughout the borough and sell a package of cable, television and Internet services.

But not all municipalities use it.

Lehighton Borough Council considered enacting the tax several years ago, but decided against it.

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