Representative-Elect Filippi will submit legislation to reduce electric bill shock
We received the following press release from Rhode Island Representative Blake Filippi.
State Government to realize over $5 million in additional tax receipts from National Grid’s electricity rate increase
Block Island, R.I., Dec. 23rd – Independent House District 36 Representative-Elect Blake Filippi released the following statement declaring his intent to introduce legislation to exempt electricity ratepayers from state taxation on National Grid’s rate hike.
“The media has extensively publicized the dramatic increase in electricity rates. What may not be widely known is that Rhode Island’s tax coffers stand to benefit from this rate increase,” Filippi said. “National Grid’s 2015 rate hike will raise electricity costs on our ratepayers by approximately $77 million over 2014’s rates, and the State stands to earn over $5 million in additional tax receipts due to this increase.”
“The $5 million figure is derived by factoring the gross earnings tax and the business sales tax on electricity usage against the $77 million in additional electricity costs. When electricity prices increase, the State makes more money off its residents and businesses,” Filippi said.
“Legislation to exempt ratepayers from taxation on the increased cost of electricity is necessary because many of us are struggling to make ends meet, and we need to keep capital working in the economy. Furthermore, the State should not benefit from this dramatic increase. It is a matter of economics and principle,” Filippi said.
“I intend to introduce this legislation at the beginning of the 2015 session and seek its expeditious consideration. We Rhode Islanders deserve no less,” Filippi said.