What are utility taxes and franchise fees, and why does the City of Fort Lauderdale levy them?
A. A utility tax is a tax levied on utility bills, to be paid by the utility purchaser. It is similar to a sales tax, except it only applies to utility bills and not to any other purchases. The City levies a 10% utility tax on electric, gas, and utility water bills for customers within the City. A State of Florida Communications services tax represents 49% and Florida Power and Light (FPL) comprises 40% of the revenue received.
