Utility Customers will See Higher Electricity and Gas Bill Due to New NC Tax
July 13, 2014
Utility Customers will See Higher Electricity and Gas Bill Due to New NC Tax
Beginning July 1, 2014, the sales tax on electricity will increase and a new sales tax on natural gas will be implemented. The changes in sales taxes will affect all electric and natural gas customers in North Carolina and are the result of the North Carolina Tax Simplification and Reduction Act (House Bill 998) which became law in July 2013. Adjustments to the sales tax are just one of many changes in tax law initiated by the Act.
As of July 1, the following changes will be implemented:
Sales tax on retail sales of electricity will go from 3% to 7%
Special rate of 2.83% on retail sales of electricity for laundries is repealed and replaced with the 7% tax.
Qualifying industrial customers and farmers continue to be exempt from paying tax on electricity
A new 7% sales tax on natural gas will be imposed
Qualifying industrial customers and farmers may seek exemption from paying taxes on natural gas
