Dozens Fight Wrongly Collected Rigby Tax
The Idaho Public Utilities Commission is investigating wrongly collected charges on the bills of dozens of Jefferson County homeowners and businesses.
The charges were not for electricity, but a franchise tax collected by Rocky Mountain Power for the city of Rigby. A franchise tax is a percentage of a resident’s utility bill that goes back to the city they live in.
Fifteen cities in southeastern Idaho have the fee, ranging from 1 percent all the way up to 10. But the IPUC said one of those cities is collecting it from people who don’t even live within its limits.
Julie Browning has lived in her Grant home since 2003. When her husband passed away last summer, paying the bills became her responsibility.
“I have to cut corners wherever I can and be aware of everything,” said Browning.
The 72-year-old’s sharp eye caught sight of a charge on her October utilities bill from Rocky Mountain Power: a “Rigby Franchise Tax.”
“In August, $4.17,” said Browning. “The month before, $5.86.”
In other words, 3 percent of the total bill is going straight to the city of Rigby.
“I said, ‘No, I don’t live in the city. Everybody has a Rigby address because that’s where we get our mail,'” said Browning.
Gene Fadness, a spokesman for the Idaho Public Utilities Commission, said Browning and 63 other homeowners and businesses outside the city limits have been helping to fund city services they don’t get.
“I just feel like it’s been a rip-off and they’ve gotten away with it and they knew what they were doing,” said Browning. “Someone knew what they were doing.”
So who’s to blame for the unfair charges?
Rocky Mountain Power spokesman Jeff Hymas said it’s a billing error. He said some unincorporated Rigby addresses may have been mistakenly coded as incorporated. But he also said the company relies on cities to verify the accuracy of these addresses.
Hymas said Rocky Mountain Power has refunded 59 bills so far, but a statute of limitations said only three years’ worth can be given back.
“This is not a utility billing. It has nothing to do with electricity service,” said Fadness. “We’re not sure if that statute applies here as well.”
Living on a fixed income, Browning appreciated the $164 she’s been refunded, but feels she should get the other $120, as well.
“I don’t think they should get to keep any of it,” said Browning.
Hymas said Rocky Mountain Power asked the city of Rigby to review all addresses. Our calls to the city today were not returned.
Fadness said the IPUC encourages homeowners and businesses to take a very close look at utility bills, even if they’re not a Rocky Mountain Power customer.
The following southeastern Idaho cities have franchise taxes collected by Rocky Mountain Power: City of Arco – 3.0% City of Bloomington- 10.0% City of Dubois- 10.0% City of Firth- 1.0% City of Franklin- 3.0% City of Iona- 3.0% City of Mud Lake- 2.0% City of Paris- 3.0% City of Preston- 3.0% City of Rexburg- 6.0% City of Rigby- 3.0% City of Ririe- 3.0% City of Shelley- 3.0% City of Spencer- 2.0% City of Sugar City- 3.0%
