Opinion No.

Honorable Warren New Yoakum County Attorney P. O. Box 359 Plains, Texas 79355

Re: Whether charge imposed on telephone company by city may be passed on to county as a customer of telephone company

Dear Mr. New:

You have been notified by the telephone utility which serves your county that it is imposing an extra charge on the bills of its customers receiving service within the city limits of Plains. The extra charge was initially denominated a `city gross receipts tax,' but was subsequently referred to in later correspondence as a `franchise fee.' This `franchise fee' is equivalent to a charge…