Return to News Exchange National Report Predicts Major Dereg Impact on Local Revenues

A report by Dallas firm Deloitte & Touche for the National Council on Competition and the Electric Industry predicts that electric deregulation will "make much of the existing tax regime for electric utilities obsolete" for local and state governments, and predicted declining revenues in many cities and towns.

The report, entitled "Federal, State and Local Tax Implications of Electric Utility Industry Restructuring," recommends that local governments consider a number of tax reforms to deal with the change, from the replacement of existing taxes with broad-based energy taxes, electric consumption taxes, repeal of existing sales and use tax exemptions for electricity, use taxes on electricity imported from other states, tax reform to reduce the differences between utility and nonutility owners of property, and replacement of gross receipts taxes with net income taxes."