Municipal utilities receipts from taxes

From the 2024 DOR Tax Exemption Study

82.16.050(1) - Municipal utilities receipts from taxes Description Municipally owned or operated public utility businesses may deduct income received directly from taxes collected for their support or maintenance. Service charges collected as taxes listed on property tax official records may not be deducted. Purpose To avoid taxing income received from local utility taxes. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.400 $1.460 $1.520 $1.590 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.340 $1.520 $1.590 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the public utility taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Office of the State Auditor, Financial data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Gov