Bill Caption

Relating to the application of the miscellaneous gross receipts tax on utility companies.

Fiscal Notes

From the Legislative Budget Board: No fiscal implication to the State is anticipated.

Bill Analysis

Under current law, a utility company means a person who owns or operates a gas, water, or electric power works or plant used for local sale and distribution located within an incorporated city or town. A gross receipt tax is imposed on each utility company located in an incorporated city or town with a population of more than 1,000. SB 559 would now have the gross receipt tax imposed on each utility company that makes a sale to an ultimate consumer in an incorporated city or town with a population of more than 1,000. It switches the trigger for the tax liability from the location where the utility is to the location where the customer is. 

Vote Recommendation Notes

This legislation is administrative in nature to clarify a disputed question about what triggers the tax on a utility and does not affect our liberty principles. We remain neutral.