Gross Reciepts Tax Lifted from REC
Rural electric companies might not receive a gross receipt tax. Although, the state Senate passed a bill that would tax per kila-watt used. Opponents are concerned because the gross receipts tax funds school districts. However, the per-unit tax replaces that funding. Proponents say rising wholesale power costs are causing ten percent utility increases. They say the usage tax creates only a three point seven percent increase. Senator Eldon Nygaard says energy costs will soar if they continue with the gross receipts tax.
"Quality of life is what draws people to South Dakota and what keeps people here-- and our cost of living index. This bill would help put a little bit more predictability in that rate of increase, while still allowing our co-ops to function properly and keep that rural electric healthy. I urge your passage of this bill," Senator Nygaard says.
Opponents say the bill passes the cost to the customers, and they say that per unit taxes don't work in South Dakota. The bill goes to a House committee riding a 25 to nine vote.
By Travis Berg
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