Customers who live near St. Leo will be refunded a total of about $56,000, mostly in credits.
By Times Staff Writer
Published August 11, 2004
ST. LEO - Tampa Electric Co. will refund thousands of dollars to customers living around the town of St. Leo after it was discovered they were paying town taxes, but living outside the town limits.
TECO spokesman Ross Bannister said the company will refund a total of about $56,000, most in the form of credits, to affected customers, who will be notified by mail in the coming week.
Bannister said a review of customer records about six to eight weeks ago turned up the glitch. Some customers have been wrongly paying town taxes, called franchise fees, since 1997, although most date back no further than 2000, he said. Saint Leo University is not affected.
Franchise fees are taxes cities and counties charge utility companies for the use of public rights of way. The taxes are passed along to customers on their monthly bills. In St. Leo, the tax is currently 6 percent.
Bannister said it's unclear who will pay for the refunds: the town or TECO. Town commissioners and Town Attorney Charles Chritton said they would likely discuss the issue at regularly scheduled public meetings in September.
In the meantime, Bannister said TECO is refunding the money to customers now, while the issue is still being discussed. He said refunds would include interest at a rate of 6 percent to 7 percent for the time the money was held. Customers can either accept a credit to their bills or, if they prefer, can ask for a check. Letters being sent to affected customers include a toll-free telephone number customers can call to request a check.
Bannister said the amount of the refund depends on the length of time a customer has been charged the tax and how much power the customer uses. Refunds range from about $20 to up to $2,000, he said.
