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Committee OKs Supervisor Rosenberg Testifying in Support of Utility Tax Bill AB 559
Summary
Supervisor Rosenberg won committee authorization to testify for AB 559 (and companion SB 556), which would expand the state efinition of taxable "utility" activity to include battery storage, pumped hydro, flywheels and LNG used for electricity generation, potentially increasing Marathon County's share of state utility tax distributions.
Supervisor Rosenberg briefed the committee on AB 559 (companion SB 556), which would expand the classes of activity the state treats as taxable utility generation for the purpose of state collections and distribution to local governments. Rosenberg said the change would include compressed air, pumped hydro, flywheels and liquefied natural gas used for electricity generation and could raise the county's share of utility tax distributions.
Rosenberg said Marathon County currently receives about $2.1 million annually from the state under existing utility tax distributions and described the bill as an update that responds to new utility technologies such as battery storage and pumped storage.
Members asked how distribution and funding work; Administrator Lance Leonard and staff explained that the state collects an ad valorem tax from utilities and distributes a share back to municipalities and counties via a formula managed by the Department of Administration. Chair Gibbs said the bill would increase county receipts if new facilities qualifying under the expanded definition are developed locally.
The committee voted to authorize Supervisor Rosenberg to testify in support of AB 559 and SB 556; one member recorded an abstention.
