Business

City To Hike Electricity Tax By 20%

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%.

Comments & Discussion

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  1. Hmmm, but they made it cheaper to visit the parks?

  2. chicago sam
    Oct 1, 2012, 6:38 pm

    Idaho Power has been very vocal in how they are trying to protect it’s customers from the requirements of Purpa where they have been forced to buy and pay for high priced wind, solar, and the now famous DYNAMIS DEAL. Why would they pass this increase on to their customers if they are not required to?

  3. More reason to buy solar panels and say a big loud F#&* you to Idaho power

  4. I want MY free phone too!!

  5. Hey Zippo, just make sure you live in the right place.

    The rural phone subsidy tax for those with land lines is also increasing. Mostly due to people ditching the traditional land line in favor of cell phones.

    http://www.idahoreporter.com/2012/guess-what-idahoans-subsidize-rural-phone-service-under-provision-in-idaho-code/

  6. Chicago, city raising franchise fee, not Idaho Power.
    I find it interesting that there can be a franchise fee on a monopoly. Wonder if water and gas is next.

    EDITOR NOTE–Already done deals years ago as well as cable TV. They pay a fee in exchange for no tax if that makes sense.

  7. The sad thing about this is even with raising property taxes year after year after year, and now with this hike in electricity fees, the City of Boise still can’t balance its budget. Why not? What the heck are they spending money on that they need so much of it? Plus, the cops are now staking out intersections to raise ticket money. That would be a great Guardian investigation.

    The Mayor has like 12 aides that shelter him from the public and that truth be told duplicate work done by other departments.

    At some point, some fiscal hawks need to step up and run these spendaholics out of office.

  8. Kareb Ragland
    Oct 2, 2012, 10:37 am

    We bought our home in 1973 and chose to have it all electric. That home has served my family well.
    Thank you City of Boise for now using Idaho Power’s promtion at that time to your advantage to furthur screw city taxpayers for your pet projects and inability to be thrifty.
    It is time for a change in the mayor’s office and to shed some of the liberal shaft from the City Council.

  9. What about the tax everyone pays to ship TVs out of the dump to Salt Lake City for recycling? I think the city pays $25.00 each. I don’t even have a TV or watch TV.
    Ithink purchasers of TVs should have to pay a disposal fee when they buy a new one. Just like tires.

  10. dog, I just give my old TVs and other electronic junk to the guys with the “help me” signs at the entrance to Wal-Mart.

    EDITOR NOTE–Zip, how kind of you! Anything helps. God Bless.

  11. We do not have an energy shortage. We have organized crime which includes government taxing and over regulation driving the price higher:

    http://www.startribune.com/business/175443791.html

    http://blogs.wsj.com/economics/2012/10/23/renaissance-in-u-s-oil-production/

    We are getting fooled by our government-industrial complex. It will continue until the middle-class is gone.

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