Public utility properties

From the 2024 DOR Tax Exemption Study

82.29A.130(1) - Public utility properties Description All leasehold interests in operating properties of state assessed public utilities that are subject to property tax are exempt from leasehold excise tax. Purpose To avoid the value of certain properties being subject to both leasehold excise tax and property tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $15.948 $16.068 $16.317 $16.576 Local Taxes $10.578 $10.592 $10.699 $10.808 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $12.051 $16.317 $16.576 Local Taxes $0.000 $7.944 $10.699 $10.808 Assumptions - This repeal takes effect July 1, 2024, and impacts nine months of collections in fiscal year 2025. - Growth rate mirrors the leasehold excise tax growth rate reflected in the Economic Forecast Council's March 2023 forecast. - Estimates are net of state and local leasehold excise tax. The state leasehold excise tax rate is proportionately greater than the local rate compared with property tax rates. A shift of tax burden from the state to local jurisdictions would t