Donna L. in Minneapolis here. Looking at Xcel Energy tariffs and seeing both franchise fees and gross receipts taxes listed as separate line items. Franchise fee shows 2.5% and GRT shows 1.8%. Are these really separate charges or is this double taxation? Client is questioning why they pay both on same bill.
Franchise fees vs gross receipts tax in tariffs - what's the difference?
Don A. from St. Paul - these are actually different types of taxes even though they look similar. Franchise fee goes to the city/municipality for right to use public rights-of-way. GRT is a state tax on utility revenues. Both are legitimate but serve different government entities. Pretty common in Minnesota to see both on same bill.