Sales subject to public utility tax

From the 2024 DOR Tax Exemption Study

82.08.0252 - Sales subject to public utility tax Description Sales subject to PU tax are exempt from sales tax. Purpose To avoid double taxation. The PU tax is a tax on consumers of utility services even though the provider of the service pays the tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $809.490 $826.160 $848.060 $875.830 Local Taxes $364.030 $371.530 $381.380 $393.870 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $757.320 $848.060 $875.830 Local Taxes $0.000 $340.570 $381.380 $393.870 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 rates reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Tangible personal property sold or distributed that are public utilities would become subject to sales tax. This includes the sale or distribution of electricity, natural gas, or water. - Local revenue estimates use the statewide average local sales and use tax rate of 2