Beginning July 1, Hoosiers will no longer have to pay the Utility Receipts Tax (URT), a state-mandated tax on the sale of utility services. Annually, this tax elimination will put an estimated $28.5 million back in the pockets of 1.3 million Hoosiers served by the state’s 38 electric cooperatives.
The Indiana Legislature voted to repeal the URT and on March 15, Gov. Eric Holcomb signed into law HEA 1002, which repeals the URT levied on retail receipts of certain utilities, including those of Indiana electric cooperatives. Removal of the URT results in a decrease of our electric rates by 1.4%.
Members will see this tax repeal as a credit, shown as “Utility Receipt Tax Repeal Credit” on your bill, starting with members who receive their BCREMC bill mid-month in July. Members who receive their bill at the first of the month will see the credit on the bill you receive in August for July use. The credit will be automatically removed from your bill subtotal before sales tax is calculated. There is no action members need to take.
The rate reduction was put in motion through the efforts of Indiana’s electric cooperatives advocating for you, our members, and negotiating with the Indiana General Assembly to repeal this tax, ultimately saving money for each and every electric cooperative member-consumer across Indiana.
As the economic outlook continues to evolve and members see inflating prices in almost all goods and services, we want to ensure our members that Bartholomew County REMC works hard every day to control costs and provide affordable, reliable electricity to the members we serve.