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AB 69

Relating to: the sales and use tax exemption for electricity and natural gas sold for residential use. (FE)

2025-2026 Regular Session Introduced by Scott Allen and 7 co-sponsors

AB 69 - Relating to the Sales and Use Tax Exemption for Residential Electricity and Natural Gas OverviewBill Number: AB 69 Title: Relating to: the sales and use tax exemption for

Failed to pass pursuant to Senate Joint Resolution 1
0
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Bill Summary · AB 69

AB 69 - Relating to the Sales and Use Tax Exemption for Residential Electricity and Natural Gas

Overview

Bill Number: AB 69
Title: Relating to: the sales and use tax exemption for electricity and natural gas sold for residential use. (FE)
Status: Fiscal estimate received
Introduced: December 10, 2024

Purpose and Intent

The primary goal of AB 69 is to expand the existing sales and use tax exemption for electricity and natural gas sold for residential use. This bill aims to provide tax relief for households and make home energy more affordable, particularly in light of rising utility costs.

Key Provisions

  • Extends the current sales and use tax exemption for electricity and natural gas used in residential dwellings to include all single-family homes, apartments, and condominiums
  • Increases the exemption threshold from the first 400 kilowatt-hours of electricity and the first 100 therms of natural gas per month to the first 600 kilowatt-hours of electricity and 150 therms of natural gas per month
  • Requires utility companies to clearly itemize the sales tax exemption on customer bills to improve transparency

Affected Parties and Impacts

  • Residential energy consumers: Households will see a reduction in their monthly electricity and natural gas bills due to the expanded tax exemption, providing financial relief.
  • Utility companies: Utility providers will need to update billing systems and processes to accommodate the new exemption thresholds and itemization requirements.
  • State and local governments: The expanded exemption is expected to result in a moderate decrease in sales tax revenue, which may impact budgets for state and local services.

Procedural and Timeline Considerations

AB 69 has received a fiscal estimate and is currently under consideration by the state legislature. If passed, the bill would take effect on January 1, 2025, with the expanded exemption thresholds and requirements applicable to all residential energy bills issued after that date.

Compiled from official sources — confirm details with the bill’s official record.

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