Residential Energy Sales Now Tax Exempt
Beginning January 1, 2006, metered natural gas, electricity, and fuels (including propane and heating oils) sold to residential customers are no longer subject to state sales tax.
The five-year phase-out of state sales tax on energy sales began in 2002 with a one percent reduction per year until the complete phase-out became effective January 1.
This phase-out applies only to state sales tax; local option sales taxes remain at the same rate in jurisdictions imposing them.
Residential customers do not apply to receive the reduction in the state sales tax. The customer’s billing from the energy provider will reflect the reduction in state sales tax automatically.
Sales tax will remain the same for non-residential customers because they do not qualify for the sales tax reduction.
The phase-out doesn’t apply to: non-residential structures; apartment buildings without individual metered units; nursing homes; assisted living facilities; adult living facilities; YMCA/YWCA; or group homes.