Dive Summary:
- The U.S. Supreme Court has rejected an appeal by the city of Des Moines, which means the city must refund between $30 and $40 million to utility customers who paid city franchise fees that have been deemed an illegal tax.
- An exact refund amount for 100,000 customers will be determined by Iowa’s Polk County District Court.
- Des Moines has been collecting about $12.6 million a year from the franchise fee, while the state Supreme Court deemed that anything more than $3.5 million was illegal and must be refunded.
From the article:
The U.S. Supreme Court on Monday rejected Des Moines’ request for an appeal in a lawsuit challenging the city’s collection of fees on gas and electricity utility bills.
The court’s decision means the city must refund between $30 million and $40 million to utility customers who paid city franchise fees that a district court and the Iowa Supreme Court determined were an illegal tax. ...