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Sen. Onder’s SB 467 would benefit all electricity customers

March 29, 2019 – Senator Bob Onder presented SB 467 before the Senate Commerce, Consumer Protection, Energy and the Environment Committee on Wednesday, supported by Associated Industries of Missouri and many utilities and utility customer groups.

The bill would clarify sales and use taxes are not due on items purchased and used to transmit and deliver electricity to customers in a usable form, such as transformers, poles, cables, etc. Sen. Onder explained these items are necessary when providing electric service to customers and are similar in nature to items used in providing telecommunications services which are exempt.

Sen. Bob Onder

Electricity customers would benefit as taxes currently flow through to electric rates. Clarifying these taxes are exempt would lower the amount allowed in rates for such taxes, reducing the amount paid by all electricity customers.

A similar provision was passed in a bill several years ago that was vetoed by then-Gov. Jay Nixon. The Committee took no action on the bill at the hearing.

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