The city of East Lansing is directing the Lansing Board of Water and Light to stop collecting a franchise fee and refund anything already collected but not yet submitted to the city.
The Michigan Supreme Court ruled last week the 5% franchise fee was an unlawful “disguised tax.” The BWL has been collecting the fee on customer’s bills since 2017.
"While we are disappointed with the Supreme Court's decision, which came after the Court of Appeals previously ruled in the City's favor, we are working to comply with the decision in a timely fashion,” East Lansing City Manager Robert Belleman said in a statement.
The Ingham County Circuit Court will help determine how the process will proceed.
The city could be forced to pay back millions of dollars in damages.
