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Old 04-21-2017, 04:53 AM   #1
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Default Being charged commercial utility rates for home base

I have recently discovered, without any notification from the city, that my utility rates have been changed from residential usage to commercial when i obtained my occupational license for the city in which i am domiciled in. My address/business address is used primarily for mailing purposes only. Has anyone here experienced this? this includes a 1c kwh addition to my electrical cost, 5c (or whatever they use for gas), and my trash pickup jumped from 21 dollars to 50. My house is not zoned for commercial use and i was almost turned down for my occupational license by the board of aldermen because of the zoning. (yes, for some reason, the board of aldermen have to meet once a month to decide who can get an occupational license in this town). AND IF!!! and if, i have to continue to pay commercial rates on the entirety of my household, can i write the entirety of my bill off as a business expense?
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Old 04-21-2017, 05:01 AM   #2
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Where is Nola? USA? If yes, what state?
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Old 04-21-2017, 05:16 AM   #3
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Where is Nola? USA? If yes, what state?
I think new orleans louisiana

Technically it is in the USA
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Old 04-21-2017, 05:48 AM   #4
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I have recently discovered, without any notification from the city, that my utility rates have been changed from residential usage to commercial when i obtained my occupational license for the city in which i am domiciled in. My address/business address is used primarily for mailing purposes only. Has anyone here experienced this? this includes a 1c kwh addition to my electrical cost, 5c (or whatever they use for gas), and my trash pickup jumped from 21 dollars to 50. My house is not zoned for commercial use and i was almost turned down for my occupational license by the board of aldermen because of the zoning. (yes, for some reason, the board of aldermen have to meet once a month to decide who can get an occupational license in this town). AND IF!!! and if, i have to continue to pay commercial rates on the entirety of my household, can i write the entirety of my bill off as a business expense?
You filthy rich (capitive) Capitalist.

You've really got some nerve.

Think about Civil Service pensions for NOLA doctrinaires.

Now, cough it up, Big Boy.
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Old 04-21-2017, 06:39 AM   #5
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actually NOLA doesn't require this. i'm domiciled in a small town in central louisiana that apparently does and i'm having a hard time finding anyone else that does this. and yes, NOLA is New Orleans Louisiana.
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Old 04-21-2017, 06:58 AM   #6
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actually NOLA doesn't require this. i'm domiciled in a small town in central louisiana that apparently does and i'm having a hard time finding anyone else that does this. and yes, NOLA is New Orleans Louisiana.
1. You need to deduct the percentage of the house that you use for business from your income taxes.

2. No you can't deduct the increases from your business as an expense.
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Old 04-21-2017, 07:13 AM   #7
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Let me rephrase the question. Is it common practice for a Utility company to charge a home based business commercial utility rates? Do YOU have to pay commercial utility rates at YOUR home based business?
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Old 04-21-2017, 07:21 AM   #8
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Let me rephrase the question. Is it common practice for a Utility company to charge a home based business commercial utility rates? Do YOU have to pay commercial utility rates at YOUR home based business?
I'm no lawyer but I'd say it is solely based on how they view the use of your residence.

I'll add that there is a town near me that charges a higher rate for water and sewer to a property they consider a business.
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Old 04-21-2017, 07:21 AM   #9
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I have never heard of it before, it's possible someone at the utility decided they'd cash in on the move to work-from-home. I don't know if Louisiana's public utility commission is as bat **** crazy as the rest of the LA government but you might dispute it with the utility company, tell them you've been miscategorized, and threaten to take it up with the public utility commission if they don't fix it. By doing this you can sick a government bureaucrat on them. The bureaucrat you get may be do-nothing lazy or may just live to generate red tape, which will be a headache for them and possibly you.
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Old 04-21-2017, 10:02 AM   #10
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Let me rephrase the question. Is it common practice for a Utility company to charge a home based business commercial utility rates? Do YOU have to pay commercial utility rates at YOUR home based business?
A guy I work with had a seperate service to his garage, they now charge him commercial rates. He DON'T OWN a business
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Old 04-21-2017, 10:06 AM   #11
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A guy I work with had a sererate service to his garage, they now charge him commercial rates. He DON'T OWN a business
They used to do that around here. Mainly to recoup their extra costs with no real load to get a decent payback.
Most of the time it is done because the customer was to cheap to feed it from their house service or the house service needed upgrading and they were to cheap to do that right.
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Old 04-21-2017, 05:32 PM   #12
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2. No you can't deduct the increases from your business as an expense.
I would have said the opposite because the increase is based solely on the business use.

What is your reasoning for saying you can't deduct the increase?
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Old 04-21-2017, 05:37 PM   #13
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I would have said the opposite because the increase is based solely on the business use.

What is your reasoning for saying you can't deduct the increase?
Because he should be deducting the % of his house used for business, you can't have it both ways.

It's just like tools you can depreciate them over time or deduct some of the initial cost but not both.

Been there done that.
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Old 04-21-2017, 07:29 PM   #14
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Because he should be deducting the % of his house used for business, you can't have it both ways.
I don't believe that is having it both ways. I think he should get to deduct the % of usage for the office, AND the total "increase" that is due to the business classification.
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Old 04-21-2017, 07:34 PM   #15
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I don't believe that is having it both ways. I think he should get to deduct the % of usage for the office, AND the total "increase" that is due to the business classification.
It's akin to paying yourself rent.

My primary objective was to avoid an IRS audit.
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Old 04-22-2017, 05:59 AM   #16
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It's akin to paying yourself rent.
There is nothing illegal to paying yourself rent. Since you have to claim it as income on the non business side of income, it's a zero sum action. Now paying the increase in utilities is a legitimate expense and you should deduct it.
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My primary objective was to avoid an IRS audit.
Always a good plan.
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Old 04-22-2017, 06:06 AM   #17
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There is nothing illegal to paying yourself rent. Since you have to claim it as income on the non business side of income, it's a zero sum action. Now paying the increase in utilities is a legitimate expense and you should deduct it.
Ask your accountant!

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Always a good plan.
I was audited once and had a nice fine with hefty penalties to pay. Never want to do that again.
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Old 04-22-2017, 06:19 AM   #18
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OK, went out and searched, read some articles and it looks like I'm wrong and MechD is right. I hate to admit that.

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Old 04-22-2017, 06:20 AM   #19
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OK, went out and searched, read some articles and it looks like I'm wrong and MechD is right. I hate to admit that.

Thanks for admitting it.

I wouldn't lie to you, I'm not a politician.
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Old 04-22-2017, 06:25 AM   #20
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I wouldn't lie to you, I'm not a politician.
No, but you do read some out there sites.
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