PUC cuts its tax rate for utilities, telecoms
PIERRE — South Dakota's tax rate on in-state gross receipts of utilities and telecommunications companies will be lower for the 2015 fiscal year that starts this summer on July 1.
The state Public Utilities Commission set the levy at 0.14 percent. Tuesday. The rate has been 0.15 percent for years
The 0.15 percent is the maximum allowed by state law. A $250 minimum also is set in state law.
Cindy Kemnitz, an administrative official for the PUC, recommended the new rate.
"So this is a decrease?" commissioner Kristie Fiegen asked.
"Yes," Kemnitz said.
The levy for the coming fiscal year was calculated to generate $2,030,648. State law limits the amount to a total covering the budgets for the current fiscal year and the next fiscal year.
The commission uses the tax revenue for its operation and personnel expenses. The tax is due no later than July 15. It is applied against fiscal 2013 gross revenues.
The change is a reduction between 6 and 7 percent.
"Actually I'm fairly excited we can actually decrease a tax rate," commissioner Chris Nelson said. "This is a great opportunity to do the right thing."