Quote:
Originally Posted by Normal
This is a serious question on the confluence of taxes here. If I remember correctly, a taxing municipality must render basic services to its citizens. In the case of those living in St. Catherine and Citrus Grove (I’m sure there are others), taxes are paid to two separate municipalities with no choices.
We pay taxes on our utilities to Leesburg on the utilities (about 18 percent) on a little over a 100 dollar electric gas bill.
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The taxes on my electric bill are $0.42 State tax on the lease of a surge protector and 2.5625% State Gross Receipt tax on the transport of electricity. Taxes only collected for the State and nowhere near 18%. So in my case, the taxing authority is the State that I live in.
It would be interesting to see the breakdown of a Leesburg Electric bill (I couldn't find one online) to see what taxes are included.
EDIT: This
Leesburg Utilities page has some useful information:
Electric Information - Effective 10/1/2022
The residential electric rate applies to an electrical service supplying electricity to a single family residence. Service provided here under shall not be shared with or resold to others.
Customer charge -> $15.00 per month
Residential 0-1000 kwh -> $0.092940 per kwh
Residential over 1000 kwh -> $0.115492 per kwh
The Bulk Power Cost Adjustment is a separate charge which could vary each month and is included in the total utility bill. Residents inside the City pay a 10% Public Service Tax. Residents outside the City pay a 10% surcharge. Total charges are subject to the Gross Receipts Tax of 2.564%.
You pay a $15 service charge and I pay $0.02 more for my first 1,000 kwh. For most months you pay less than I do.
I pay $0.023 more than you for any usage over 1,000 kwh.
You pay a 10% surcharge that I don't have. Since they carefully note that this is a surcharge and not a tax (and since it has not been challenged) it must be legal. One could certainly make an argument that if it looks like a duck and it quacks like a duck then it is actually funding for a municipality that does not provide any service to you. But again, there is probably a reason it has not been successfully challenged in court.