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Janice Kaspersen Janice Kaspersen Stormwater Editor

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SW Editor's Blog

March 2nd, 2009 9:05am PST

Taking the Pulse of Utilities

Posted By Janice Kaspersen 2 Comments

There’s disturbing news from Georgia. A bill has been introduced in the state’s general assembly that would exempt state government—its buildings and properties—from paying stormwater utility charges to local governments. Last week, Brant Keller—a member of Stormwater magazine’s editorial advisory board, a sometime blogger on our site, and the man instrumental in launching the first stormwater utility in his state—reported on the bill, known as HB 316.

You can read his comments here.

The issue isn’t unique to Georgia, and it isn’t only state governments that periodically try to claim an exemption from utility fees. At various times, tax-exempt entities also claim they shouldn’t pay, and their argument, which equates fees-for-service with taxes, helps confuse in the minds of many people an already dicey question. An article from a few years back helps clarify the difference and is still relevant: “Stormwater Charges: A Fee or a Tax? And Does It Matter?”   (It very much does matter.)

Has your utility faced similar challenges? What were the arguments for and against various exemptions?

What Do You Think?

Post a Comment

sarahbruce

March 27th, 2009 3:33 PM PT

Regarding the comment from Gordon, wouldn't it help to NOT exempt public and other properties? Exempting properties because of ownership/tax status weakens the "logical nexus" between the impact and the justification for the fee. Being inconsistent certainly exacerbates the contentiousness, and widens the window by which other types of landowners might claim a hardship. Better to create a credit for good housekeeping/retrofits and encourage those who wish to avoid or reduce fees to take advantage of the credit. Even the local government should be subject to its own stormwater fee; it would set a good example and possibly encourage some better site designs!

Gordon

March 4th, 2009 8:28 AM PT

While the rationale of assessing all properties (including churches, schools, government, DOT) equally for stormwater fees is valid, this issue becomes a political hot potato for many communities. In Florida, cities often exempt other government properties from fees, finding it too difficult to assess their neighbors, creating an adversarial relationship and then asking them to participate on regional or watershed projects and programs. This type of confrontation has halted stormwater utility creations on several occasions. The small amount of $$ lost in the exemptions is not worth the political and legal battle to collect the $$.

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