Most Questar Customers Get a December Tax Holiday

None by KCPW

Cities Give Back Energy Tax Windfall

(KCPW News) When natural gas prices skyrocketed last winter, about half of Utah cities saw a collective $9 million energy tax windfall.

The Legislature didn't think that was fair, so those customers are getting a "tax holiday" this month on their natural gas bills. State Rep. Greg Hughes of Draper sponsored the legislation to return the money after constituents complained that it was unfair for cities to receive a tax windfall when individuals are struggling with higher heating costs.

In dollar terms, the average household should see a $5- to $7-dollar reduction in its December Questar bill. But that's only in the 121 cities that levy the tax.

"Collectively, it's almost $9 million statewide," Rep. Hughes said. "And for cities to be returning that back to constituents in the form of a tax rebate on their gas bill actually represents a larger portion of their budget than the $70 million dollar income tax reform that we did as a state in a special session this last year."

Customers living in all the Wasatch Front cities will see the rebate on their natural gas bills. However, those living in unincorporated county areas will not because they never paid the tax to begin with.

Email to a friendPosted in KCPW Newsroom. Copyright 2009 KCPW