Utility companies in Irmo could have to pay new fee. Will customers pay more?
Irmo could soon require a new fee from utility operators in the town limits, and the impact could ultimately be felt by customers.
A new fee could be charged on companies that provide electricity, natural gas, water and even cable and internet services, Irmo Town Council was told at a work session last week at town hall.
Town staff estimates that a new fee of 4% to 5% on utility providers could raise up to $200,000 annually for the town. Similar fees are already charged by Cayce, Columbia and Lexington on utility providers in the municipal limits.
“This would be for companies like Dominion, not government utilities like Columbia Water,” said Deputy Town Administrator Doug Polen at Tuesday’s meeting, but “Blue Granite would pay one, and any of the cable providers in town.”
Mayor Bill Danielson said he was concerned that the cost of any fee imposed by the town would be passed on to Irmo utility customers.
“You’ve got folks who are being squeezed out of their apartments,” Danielson said. “Will this put them over the top?”
The mayor later told The State he would want to speak to utility providers to try to ensure customers don’t end up paying more for any additional fee.
“They don’t have to pass the franchise fee onto the customers, they could absorb that,” Danielson told The State. “When they’re in there digging up neighborhoods, that’s the number one complaint we get. I’m at the point where I’m not granting anybody the easements to go dig up people’s yards.”
The mayor said if the utility fee goes through, he would like to see an ordinance requiring it to be used to support residents who are impacted by utility bills.
“You could put that into an account to help them pay rent,” he said. “There are ways that you can do it.”
Irmo already has an uplift initiative incorporated as a non-profit at town hall that has channeled $75,000 in donations into community support for individuals who are struggling. Danielson said he would like to see any utility fee money go into that program.
“That can help seniors or folks dealing with food insecurity, and could really help them out if they’re in a bind,” Danielson told The State. “As a town, we’ve never had the ability to go out and help our senior citizens by writing the check to deliver a product.”
Town council members didn’t set an amount for the fee during Tuesday’s discussion, but said it would likely be around mean paying about $25 a year for the town’s utility customers.
“That’s about $2 a month,” said Councilwoman Phyllis Coleman. “That’s something you can use to benefit a senior.”
The town is also considering adding a new 3% accommodations tax on hotels and short-term rentals within the town limits. Town Administrator Jim Crosland called it a “heads in beds” tax.
That tax would be expected to raise an additional $125,000 per year, which could be put toward events or activities that might draw visitors to stay and spend money in the community.
“The Okra Strut would be a prime example,” Crosland said of the town’s signature annual festival.
The town has a similar hospitality tax on food and drinks which, among other things, contributed $50,000 last year to the Irmo Little League team on its run to the Little League World Series, Danielson said.
Irmo’s position straddling two counties could complicate collection though. Because Richland County already collects accommodations tax, Irmo would only be able to collect about 1.5% of the revenue from stays on that side of town. But Lexington County does not, which would leave the full 3% to the town when collected on the other side of the county line, the mayor said.
No action was taken on either proposal during Tuesday’s meeting, but the town will begin setting its 2026-27 fiscal year budget starting in April. Danielson predicted the accommodations tax could get council support but was less sure if the utility fee could get majority support from the five-person council.
“I don’t know if two others would be comfortable enough to do anything with it,” he said.
This story was originally published March 9, 2026 at 8:16 AM.
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