HB 899 Summary

• Imposes an additional gross receipts tax on electrical power and energy delivered to retail consumers, phased in at 1.5% (Jan 1, 2015), 2.5% (Jan 1, 2016), and 3.5% (Jan 1, 2017)

• Revises sales tax rates for electrical power and energy from 7% down to 4% (Jan 1, 2015), 2% (Jan 1, 2016), and 0% (Jan 1, 2017), with discretionary surtaxes applying regardless of rate changes

• Requires discretionary sales surtaxes to apply to all charges for electrical power and energy unless specifically exempted, and allows utilities to separately state the additional tax without including it in the gross receipts tax base

• Provides exemptions from the additional tax for certain users including those eligible under specific sales tax exemptions for machinery, agriculture, household fuel, enterprise zones, and federal government

• Establishes a sales tax holiday from September 19-21, 2014, exempting the first $1,500 of new Energy Star and WaterSense products priced at $500 or more, limited to one purchase per product type per person