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Finance, Budget & Taxes > Taxes > Franchise Fees

Franchise Fees

Utility license fees, or franchise fees in many cities, are imposed on the gross receipts of various utility companies operating within the City. 

Applicable Rates

  • Telephone service (includes wireless)  7%
  • Cable television 5%
  • The City charges a license fee of 7% of the gross receipts derived from the sale of electric energy for domestic and commercial consumption within the City.
  • The City charges a license fee of 7% of the gross receipts derived from the sale of natural gas for domestic and commercial consumption within the City.

The City established the Video Service Provider Fee (Cable Franchise Fee) at 5% in 2007 with the passage of Ordinance No. 6470. Under the Missouri Constitution, state laws supersede local ordinances. The law, RSMo 67.2689, was recently updated and places a cap on the Video Service Provider franchise fee a municipality may charge at the following:

  • Effective August 28, 2023, a cap of 4.5%.
  • Effective August 28, 2024, a cap of 4.0%.
  • Effective August 28, 2025, a cap of 3.5%.
  • Effective August 28, 2026, a cap of 3.0%.
  • Effective August 28, 2027, and thereafter, a cap of 2.5%.