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Council declines proposed natural‑gas use tax after staff detail on third‑party suppliers
Summary
Staff proposed a per‑therm gas use tax to capture revenue from customers served by third‑party natural‑gas suppliers; staff estimated around 116 accounts would be affected. Council raised concerns about business impact and the chosen $250,000 cap; the measure failed 3‑3.
Council debated an amendment to the city’s utility tax code to apply a per‑therm gas use tax aimed at customers whose natural gas is supplied by third parties and not billed by Ameren as distribution. Josh Ray, staff presenter, said about 116 accounts — largely large commercial customers — currently escape the tax under Ameren’s billing approach. “There’s approximately a 116 gas utility customers in Pekin, mainly large commercial,” Ray said.
Staff proposed a 5¢ per therm structure (about 5% on average) with a $250,000 cap to avoid excessive charges to large users. Council members pressed staff on how many businesses would hit that cap and whether the city had exact customer lists; staff said they could produce lists but did not have a ready breakdown of employment or fiscal impact per account at the meeting. After discussion and questions about fairness and business competitiveness — and with a cap and implementation mechanics unresolved — the motion failed on a 3‑3 vote.
