Those pesky politicos in both Boise and Nampa are raising the tax on your electricity by 20%.
The local “franchise fee” only applies if you use electricity and it will increase from 1.25% to 1.50%–an increase of 20%. Currently, 92 municipalities charge the “fee” which is really a tax paid by consumers.
It is an interesting law–1% may be levied without a vote of the people. More than 1% up to 3% can be levied by either a vote of the people or the city council passing a resolution and getting power or other utilities to agree. Here is the STATUTE.
The Idaho Public Utilities Commission told the GUARDIAN:
“The PUC does not have a role in this assessment other than a utility’s obligation to file notice of the fee or a change in the fee with the Commission. Cities utilize the franchise fee as a way to raise money for city purposes using the convenience of utility bills to collect the money. Revenue collected from the fee is not used for utility services and does not go the utility. It is a “pass-through” from the utility to the city levying the fee.”
In Boise the fee is about $2 million and will go up to $2.5 million according to City budget documents.
Franchise fees are a little known or understood revenue source for cities. We hear they have franchise fees on trash collection in Nampa which approach 20%.
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