What is the history of franchise fees in Shawnee?
From 1948 to 1985, residents paid a 5% franchise fee on gas and electricity. In 1985, the Governing Body adopted Resolution 636 committing to a reduction in residential franchise fees if the % retail sales tax was approved by voters. The retail sales tax was approved and in 1986, residential franchise fees were reduced 1% each year until they were zero. The City’s current sales tax rate is 1.25%. 1% is a general sales tax the remaining .25% is split between Parks and Pipes and Public Safety. The Public Safety portion is being used to pay for the new Justice Center and Fire Station 72. Residential customers have not paid a franchise fee on gas and electricity in the City of Shawnee since 1989. Residents currently pay a franchise fee on telephone and telecable services. Commercial businesses have continued to pay a franchise fee since 1948. Current rates for commercial customers are 5% on electricity and 3% on gas. Part of the proposed change is also to raise the commercial gas franchise
