The proposal to allow counties to impose a new local utility tax (SB 5088) did not advance before the legislative cut-off and will not be considered this session.

County proposal for utility tax authority

January 13, 2025

A bill proposal would allow counties to impose a new local utility tax.

Unlike cities, counties do not have general authority to impose taxes on utilities operating in counties. SB 5088 would provide a local option for counties to impose a county utility tax up to 3% on telecommunications, natural gas, electric, cable, solid waste, water, and sewer utilities.

The tax would be imposed on the utility and could be imposed in unincorporated and incorporated areas of the county, with a credit for utility taxes paid in areas taxed by cities and towns for utility services in the city or served by city and town utilities.

This proposal would help bridge counties’ structural revenue gap.