TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: An Ordinance of the City of North Port, Florida, Providing for the Levy and Collection of a Public Service Tax on the Purchase of Electricity Within the City; Providing for Findings; Providing for Exemptions; Providing for Record Keeping; Providing for Violations and Penalties; Providing for Enforcement; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Option 1: Approve Ordinance No. 2026-31 as presented and move to second reading on November 17, 2026.
City Commission Options
Option 1: Approve Ordinance No. 2026-31 as presented and move to second reading on November 17, 2026.
Pros: Reduces taxes. A tax reduction would directly lower electricity bills, helping households manage increasing living costs and making local businesses more competitive. Would also show signs of fiscal responsiveness, especially in times of inflation and rising energy prices.
Cons: Reduces unrestricted revenue available to the General Fund for administration and programs such as Police, Fire, Parks, and several others.
Option 2: Deny Ordinance No. 2026-31 as presented.
Pros: Aligns to proactive financial planning by preserving stable revenue for essential services and programs. It also avoids shifting the financial burden to other taxes or fees while ensuring equitable outcomes across residents and businesses.
Cons: Would not lower electricity bills and help households and businesses manage increasing energy costs.
Background Information
Florida Statutes Section 166.231 authorizes a municipality to levy a tax on the purchase of electricity within the municipality, at a rate not to exceed 10% of the payments received by the seller of electricity from the purchaser of the service. Ordinance No. 2026-31 reduces the existing Electric Public Service Tax from 10% to 9.4%.
The following provides a chrono...
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