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Reduced utility bills from repeal of utility receipts tax effective July 1, 2022

The House Enrolled Act 1002 authorized the repeal of the Utility Receipts Tax (URT) which was enacted by the General Assembly of the State of Indiana in March 2022.

The URT repeal effective July 1, 2022 will help reduce utility bills resulting from the reduced expenses for water, electric and natural gas utilities, among others.

Here’s what you need to know:

  • Requirement to reduce rates and charges – Utilities subject to the payment of URT are required to reduce their rates and charges due to the reduction in the URT.
  • Requirements for both regulated and non-regulated utilities - Utilities need to comply with HEA 1002 whether or not they are regulated by the Indiana Utility Regulatory Commission (IURC).
  • Requirements for IURC regulated utilities – Utilities regulated by the IURC subject to the payment of URT need to file a rate adjustment with the IURC by May 1, 2022 that adjusts the utility’s rates and charges to reflect the repeal of the URT The rate adjustment effective date is July 1, 2022, which is the effective date of the repeal of the URT, pending IURC approval.
  • Requirements for non-regulated utilities - Non-regulated utilities subject to the payment of URT also need to adjust the utility’s rates and charges to reflect the repeal of the URT.
  • Notification requirements – IURC regulated and non-regulated utilities need to provide notice with specific language to affected customers in each of the next two regular billing cycles following the adoption of the rate reduction. The notice must include a statement that the adjustment in rates and charges reflects the repeal of the URT.

If it’s been some time since your utility has conducted a rate study or if you need assistance with the rate reduction process as a result of the repeal of URT, please contact us.

Doug Baldessari
Concert Hall Tower at the West Chester University of Pennsylvania
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