Taxes on Your Florida Electricity Bill
Your electricity bill includes a gross receipts tax that may include up to four other different taxes, paid to state or local governments. You may pay a franchise fee, utility/municipal tax, Florida sales tax, and discretionary sales surtax, too. These taxes vary by area and are not controlled by your utility company. The company collects these taxes and distributes them to the proper government entities.
• Gross Receipts Tax: paid to the State of Florida; approximately 2.56% of your bill.
• Franchise Fee: paid to municipalities and/or counties in exchange for the government not creating an electric utility of its own that would compete with your utility company.
• Utility/Municipal Tax: paid to municipality or county; based on your electricity usage.
• Florida Sales Tax: paid to the State of Florida; 7% of the amount of electricity you purchase.
• Discretionary Sales Surtax: paid to your county.
Fees on Your Florida Electricity Bill
The Florida Public Service Commission (PSC) regulates the types of fees your electricity company can charge you, including these common fees.
• Fuel Charge: pays for the cost of fuel; your electricity company does not make a profit on fuel charges, which are reviewed and adjusted annually by the PSC.
• Non-Fuel Charge: pays for expenses other than fuel, including making and distributing electricity, programs that reduce demand, meeting environmental regulations, and purchasing electricity from other utility companies.
• Customer Charge: pays for providing service to your facility, including cost of the meter, billing, and customer service; fixed monthly amount owed even if you don’t use electricity in any given month.
• Storm Charge: repays the bonds and taxes issued to cover 2004-2005 hurricane restoration efforts and a future storm restoration fund.
Have questions about specific taxes and fees on your electricity bill or other utility bill? Speak with the experts at SM Engineering today. We’ll explain your bill and scour it for potential savings. Schedule your no-obligation bill audit today.
