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State and Local Electric Utility Taxes:
Author(s) -
Howe Edward T.,
Reeb Donald J.
Publication year - 1999
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1999.tb03288.x
Subject(s) - revenue , competitor analysis , monopoly , electricity , business , tax revenue , position (finance) , neutrality , state (computer science) , electric utility , economics , industrial organization , market economy , public economics , finance , marketing , chemistry , computer science , electrical engineering , engineering , philosophy , epistemology , algorithm
Competitive forces emerging nationally across the electric utility sector as a result of actual and anticipated deregulatory activity have forced the industry, various governmental units, and the general public to consider a number of important issues. One major concern is the extent to which state and local taxes imposed on the major investor‐owned firms, traditionally embedded in regulated rates, will affect their competitive position relative to challenges from nonregulated competitors offering intrastate or interstate electricity sales. The most likely trend is tax revenue reduction accompanied by some efforts at revenue neutrality, as investor‐owned firms lose their monopoly status in a more market‐oriented environment and compete with smaller finns with relatively lower cost structures. The trend will also include customer‐based taxation shifting the burden from the providers of electricity to the customers, with the providers remaining as tax collectors.