SB791 Summary

• Reduces sales and use tax on natural gas and electricity for manufacturers from 4.375% to 1% effective July 1, 2014, with the rate dropping to 0% (plus constitutional excise taxes) on July 1, 2015.

• Establishes a tiered rate reduction schedule for electric power generators using combined-cycle gas turbine technology, with rates declining from 5.125% to 1% between January 2012 and January 2015.

• Caps annual tax savings refunds at $27 million per fiscal year and allows the Director of Finance and Administration to suspend refund processing when the cap is reached, with unpaid refunds prioritized in subsequent fiscal years.

• Extends the statute of limitations for refund claims by one year to accommodate the refund process limitations.

• Requires tax revenue distribution with 76.6% to general revenues, 8.5% to the Property Tax Relief Trust Fund, and 14.9% to the Educational Adequacy Fund.