The sales and use tax exemption for electricity and natural gas sold for residential use. (FE)
If enacted, SB90 would have a significant impact on household finances, allowing residents to save on utility bills throughout the entire year instead of only during the winter months. Supporters of the bill argue that this policy could serve as a financial relief measure for residents who face increasing energy costs. Additionally, proponents believe that this change could stimulate energy usage and assist households in managing their budgets more effectively, particularly during peak usage times in hotter months.
Senate Bill 90, introduced during the 2025-2026 legislative session, aims to amend existing tax laws related to sales and use taxes concerning electricity and natural gas sold for residential use. Currently, these utilities are exempt from sales tax only during the colder months from November to April. The proposed amendment seeks to extend this exemption year-round, thus removing the seasonal limitations on sales tax for residential electricity and natural gas. This change is designed to alleviate financial burdens on consumers by reducing their overall energy costs.
However, there may also be contention surrounding this bill, particularly concerning the implications for state revenue. By exempting electricity and natural gas from sales tax entirely, the state could potentially lose significant revenue that funds essential services and programs. Critics may argue that while the bill offers relief to consumers, it raises concerns over funding for public services, which could be affected by the loss of tax income. The balance between providing consumer relief and maintaining sufficient funding for state operations may create a debate among lawmakers and constituents.