LANSING — East Lansing agreed to pay $7.8 million to settle a class action lawsuit over a 5% utility fee the Michigan Supreme Court ruled was an illegal tax, a decision that has left several area townships in a gray area as to whether they too might also need to repay millions collected, in some cases, over nearly two decades.

In all, seven Lansing-area municipalities have or once had franchise fees they imposed on their residents who were Lansing Board of Water & Light customers, collecting a combined $33.4 million, according to BWL records obtained through a public records request.

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