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('OLEMAN, HERNHOLZ, DICKERSON, <br /> BERNHOLZ, GLEDEHILL & HARURAVE <br /> ATTORNEYS AT LAW <br /> 110 CHL'RTON STREET <br /> HILLSPOROUGH, N.C. 27278 <br /> 919-732 2196 <br /> 919-942-8000 <br /> CHAPEL HILL OFFICE <br /> SUITE 20,FRANKLIN BUILDING June 1 1 <br /> 137 E.FRANKLIN STREET / 9 87 <br /> CHAPEL HILL,N.C. 27514 <br /> 919.929.7151 <br /> ALONZO B.COLEMAN.JR. <br /> STEVEN A.BERNI{OLZ <br /> DONALD R. DICKERSON <br /> ROGER B.BERNHOLZ <br /> GEOFFREY E.GLEDHILL <br /> DOUGLAS HARGRAVE Randall M. Roden, Esquire <br /> MARTIN J. BERNHOLZ <br /> RICHARD J. SNIDER,JR- Tharrington, Smith & Hargrove <br /> 0_NICHOLAS HERMAN Attorneys at Law <br /> KAREN J SHANGRAW Y <br /> Post Office Box 1151 <br /> Of Counsel Ralei h <br /> BONNER D.SAWYER g , North Carolina 27602 <br /> (1902-1972) <br /> Re: Carolina Cable Franchise with Orange County <br /> and the Orange County Cable Television <br /> System Ordinance <br /> Dear Randall: <br /> Thank you for your May 28, 1987 letter and the <br /> copy of the opinion of the North Carolina Court of <br /> Appeals in Lexington vs. Summit Communications, Inc. I <br /> do not believe that the Summit case controls the <br /> question of whether or not Orange County can raise the <br /> tax on cable television companies franchised by it <br /> under North Carolina General Statute Section 153A-137 . <br /> I think the Summit case clearly turns on franchise <br /> language and ordinance language which limits the City <br /> of Lexington's ability to charge fees for other than <br /> "improved television reception service. " <br /> It is my opinion that the fee charged by Orange <br /> County is an annual privilege tax and that the rate may <br /> be changed annually. The initial rate set, 3%, was the <br /> maximum permitted at that time by law. The law has <br /> changed and the maximum is now 5%. North Carolina <br /> General Statute Section 153A-154 provides that a county <br /> may levy an annual franchise tax on cable television <br /> companies franchised under G.S. 153A-137. Nothing in <br /> the franchise ordinance to Village Cable, now Prime <br /> Cable Income Partners L.P. , in my opinion, limits the <br /> ability of the County to establish its tax and to vary <br /> the amount within the legal limits on an annual basis. <br /> I will look at any other authority or information <br /> you have on this point. As I mentioned to you when we <br /> spoke about this, we can continue to discuss this as an <br /> • <br /> • <br /> 1 <br />