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.
Public Utility Taxes are reported on an addendum to the Combined Excise Tax Return.
There are different rates, depending on the specific utility activity:
|Distribution of water||.05029|
|Generation/distribution of electrical power||.038734|
|Telegraph companies, distribution of natural gas, and collection of sewerage||.03852|
|Urban transportation and watercraft vessels under 65 feet in length||.00642|
|Railroads, railroad car companies, motor transportation and all other public service businesses||.01926|
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.