Residents will pay higher franchise taxes on electricity, cable television and natural gas as well as a new tax on telephone service.
The City Council voted Tuesday to charge a 5 percent franchise tax on all four services. Previously, Pleasant Grove charged a 3-percent tax on electricity and cable television, a 2-percent tax on natural gas and nothing on telephone service.The city's franchise tax is now in line with that charged by Orem, American Fork and Lehi.
City officials said hiking the rate and adding it to telephone service is necessary to keep the city's budget on an even keel. Decreasing property-tax revenues resulted in a $157,000 budget shortfall this year, according to finance director Kay Driggs.