Joint utility services

From the 2024 DOR Tax Exemption Study

82.16.050(3) - Joint utility services Description Businesses may deduct income subject to the PU tax that are amounts paid to a subcontractor of a PU service that is jointly provided. Purpose To eliminate the pyramiding of the PU tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $37.920 $38.780 $39.770 $40.870 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 $35.550 $39.770 $40.870 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 - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Business Year Enacted: 1935 Primary Beneficiaries: Utility and public service companies Taxpayer Count: 609 Program Inconsistency: None eviden