Committee backs shifting electricity generators from utility tax to statewide education property tax; three‑year pilot phase considered

The Ways and Means Committee voted to recommend passage of House Bill 696 by a 17–2 roll call after extended testimony from the Department of Education, municipal representatives, and generation industry groups.

HB696 would reclassify electric generators that are currently taxed under the state utility property tax (UPT) so they instead are subject to the statewide education property tax (SWEPT). The draft includes a phase-in provision and a limited period in which existing payment‑in‑lieu‑of‑tax (PILOT) or pilot agreements would remain in force before reclassification is fully effective.

Mark Manganiello of the Department of Education’s Bureau of School Finance explained how the change affects multiple layers of revenue. Using current data, he said moving qualifying generators into SWEPT would reduce utility property tax receipts by roughly $12.7 million while SWEPT revenue would remain at its current certified level; the net…