New Jersey Kills Gross Receipts Taxes
The New Jersey Legislature has passed a utility tax reform package eliminating the gross receipts and franchise tax for electric, natural gas and telephone utilities.
The new tax system will levy a 6-percent tax on electric and gas sales, a 9-percent tax on companies selling the electric and gas and a transitional tax to be phased-out after five years. The package guarantees that municipalities will receive $745 million in aid in 1998 to make up for the lost revenues. That annual amount will climb to $755 million in 2002.