What's happening
This bill gradually reduces and then eliminates the utility gross income tax for certain gas and electricity providers in New York by 2022.
Why it matters
Gradual reduction of utility gross income tax. The bill phases down the tax on the transportation, transmission, or distribution of gas or electricity by certain utilities between 2019 and 2021, eventually eliminating it entirely in 2022. This could lower operational costs for these providers over time.
Potential impact on consumer energy prices. By reducing or eliminating a tax that utilities currently pay, the bill could pave the way for companies to pass savings on to consumers, potentially lowering electricity and gas bills, though this outcome would depend on market conditions and regulatory oversight.
Effects on state revenue and public programs. The elimination of this tax would decrease state tax revenue from affected utilities, which could impact funding for programs or services that rely on these revenues unless offset by other sources.
Competitive landscape and investment incentives. The tax cut could make New York a more attractive location for utility providers, possibly encouraging infrastructure investment and competition among energy suppliers, with further implications for service quality and innovation.
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Who cares
Headline styles
Phase Out Utility Service Tax
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 61–1
- Ordered to third reading cal.1042
- Committee discharged and committed to rules
- Referred to energy and telecommunications
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8399
IN SENATE
May 4, 2018
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the tax law, in relation to tax on the furnishing of utility services
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 1 of section 186-a of the tax law, as amended by section 4 of part Y of chapter 63 of the laws of 2000, is amended to read as follows:
(b) a tax equal to (1) two and five-tenths percent on and after January first, two thousand through December thirty-first, two thousand, two and forty-five one hundredths percent from January first, two thousand one through December thirty-first, two thousand one, two and four-tenths percent from January first, two thousand two through December thirtyfirst, two thousand two, two and twenty-five one hundredths percent from January first, two thousand three through December thirty-first, two thousand three, two and one hundred twenty-five one thousandths percent from January first, two thousand four through December thirty-first, two thousand four and two percent [commencing] from January first, two thousand five, through December thirty-first two thousand eighteen, one and five-tenths percent from January first, two thousand nineteen through December thirty-first, two thousand nineteen, one percent from January first, two thousand twenty through December thirty-first, two thousand twenty, five-tenths of a percent from January first, two thousand twenty-one to December thirty-first, two thousand twenty-one, and zero percent commencing January first, two thousand twenty-two and thereafter of that portion of its gross income derived from the transportation, transmission or distribution of gas or electricity by means of conduits, mains, pipes, wires, lines or the like and (2) two and one-tenth percent from January first, two thousand through December thirty-first, two thousand, two percent from January first, two thousand one through December thirty-first, two thousand one, one and nine-tenths percent from January first, two thousand two through December thirty-first, two
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15612-01-8
S. 8399 2
thousand two, eighty-five one hundredths of one percent from January first, two thousand three through December thirty-first, two thousand three, four-tenths of one percent from January first, two thousand four through December thirty-first, two thousand four and zero percent commencing January first, two thousand five of all of its other gross income, is hereby imposed upon every utility not taxed under paragraph (a) of this subdivision doing business in this state which is subject to the supervision of the state department of public service which has a gross income for the year ending December thirty-first in excess of five hundred dollars, except motor carriers or brokers subject to such supervision under the public service law; and
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to tax on the furnishing of utility services
Purpose
This legislation implements a phase out of the final two percent tax on utilities under Article 9 of the tax law.
Summary of provisions
Section 1 amends § 186-a paragraph (b) of the tax law which relates to tax on furnishing utility services.
This legislation commences a phase out of the tax on gross income from the transportation, transmission, and distribution of gas and electric- ity which are passed down to customers on their bills. Under this section, the tax will be phased out as follows:
Starting January 1, 2019 the tax will be reduced to 1.5%, Starting January 1, 2020 the tax will be reduced to 1%, Starting January 1, 2021 the tax will be reduced to 0.5%, Starting January 1, 2022 and after the tax will be reduced to 0%.
§ 2 - Effective Date
Existing law
Under the current law, the current rate of taxation is set at 2%.
Justification
New Yorkers pay some of the highest energy costs in the nation. By phas- ing out the remaining two percent tax, hardworking New Yorkers will see reductions on their utility bills.
Legislative history
New bill.
Fiscal implications
FY 2019 : $12 million; FY 2020: $47million; FY 2021 ; $95 million; FY 2022 : $142 million; and $190 million when fully phased-in.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.