Franchise Fees

Utility license fees, also known as franchise fees in many cities, are fees imposed on the gross receipts of various utility companies operating in the City.  Applicable rates are as follows:

Electricity                                                             7%

Gas                                                                        7%

Telephone service (includes wireless)            7%

Cable television                                                   5%*

*The City of Lee's Summit established the Video Service Provider Fee (Cable Franchise Fee) at 5% in 2007 with the passage of Odinance 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%