A hidden tax that apparently never ends

COMMENTARY

MARK SCHUMANN

The Indian River County Commission imposes a 6 percent tax (franchise fee) on residents living in the unincorporated areas of the county served by Vero Electric. During the most recent fiscal year, the City of Vero Beach collected on behalf of the County $2,846,389 in electric franchise fees.

The assessment and collection of this nearly $3 million tax is a provision of the franchise agreement between Vero Beach and the County. That agreement is set to expire in 2017, and the County Commission has insisted it has no intention of renewing the agreement.

Just last week, the Florida Supreme Court affirmed that Vero Beach, by order of the Florida Public Service Commission, has the right and obligation to continue serving its customers in the unincorporated areas of the county, even if and when the current franchise agreement expires.

So, what about $2.8 million County tax the franchise agreement makes possible. You guessed it. The tax remains.

Ironically, to a person, the five members of the Indian River County Commission insist Vero Beach has no right to earn a 6 percent return on investment for building, owning and operating a $100-million-a-year business, namely Vero Electric. Yet, the Commission is quite comfortable taxing  electric bills 6 percent, disguising the tax as a “franchise fee.” (Unlike Indian River County, the Town of Indian River Shores does not impose a 6 percent “franchise fee” on electric bills.)

 

 

5 comments

  1. Sounds to me like when the Franchise Agreement expires, Vero Beach does not have the legal authority to “tax” the rest of the county and remit the funds to IRC. Another question for Schef and the rest of the lawyers. I suggest that we bill the County for the services.

  2. Let the county collect their own 6% franchise fees. There is no reason for the city to collect the 6%,get nothing out of it ,and then be abused and sued by the county commissioners.

  3. The hidden tax that electric rate payers should be concerned about is the slush fund that allows FP&L to collect for the potential costs of building a new nuclear plant. .There has not been a new nuclear power plant proposal since the Three Mile Island accident. Then there was the disaster of
    Cherynoble and Fukisiama..Thus,it s not likley that FP&L llwi ever need the funds allegedly needed for a new nuclear plant.

  4. Did you not at one time believe the decline of Western Civilization could only be halted by zfPL’s takeover of Vero Electric?

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