Are Franchise Fees Just Another Tax?

While not technically considered a “tax”, this is a new dedicated revenue source for the city which would be collected from utility users in Chanhassen; it will have the same effect as a tax. However, it is not levied in the way a property tax is levied, given that franchise fees are not tied to the value of a property. Thus, all single-family homes would pay the same amount toward the PMP assuming they have both gas and electric services. Specifically, franchise fees are a method of collecting funds from utility companies who use city rights-of-way. These funds are typically passed directly through to all commercial businesses, tax-exempt properties, and residents that use the street and trail systems.

Show All Answers

1. What is a Pavement Management Program (PMP)?
2. What is a Franchise Fee?
3. Are Franchise Fees Just Another Tax?
4. What will the franchise fee funds be used for?
5. What is the City's authority to charge a franchise fee?
6. How much will I be charged?
7. Would the City still assess property owners for street projects?
8. I live in an apartment or townhome. Will I be charged a franchise fee?
9. How often will the city review the franchise fee for consideration of changing the fee?
10. Where can I go to find out more information on the proposed Franchise Fee?