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Public utility tax
What is the public utility tax?
It is a tax on public service businesses, including businesses that engage in transportation, communications, and the supply of energy, natural gas, and water. The tax is in lieu of the business and occupation (B&O) tax.
How do I pay the tax?
Public Utility Taxes are reported on an addendum to the Combined Excise Tax Return.
What rate do I pay?
There are different rates, depending on the specific utility activity:
| Activity | Rate |
|---|---|
| Activity Distribution of water | Rate .05029 |
| Activity Generation/distribution of electrical power | Rate .038734 |
| Activity Log transportation | Rate .013696 |
| Activity Telegraph companies, distribution of natural gas, and collection of sewerage | Rate .03852 |
| Activity Urban transportation and watercraft vessels under 65 feet in length | Rate .00642 |
| Activity Railroads, railroad car companies, motor transportation and all other public service businesses | Rate .01926 |
What are the funds used for?
The majority of the funds are distributed into the state general fund. A portion, however, provides financial assistance to local governments for maintenance of public works facilities.
