MEMORANDUM

To: Stakeholders and interested parties, SJR 91 Task Force
on State and Local Taxation

From: Staff, SJR 91 joint subcommittee

Re: Preparation of task force final report.

As a means of collecting information for the preparation of the final report to the joint subcommittee, The SJR 91 Task Force on State and Local Taxation requests stakeholders to provide responses to the following questions, preferably by e-mail attachment, to legislative staff no later than October 9, 1998.

1. Should the current taxation scheme for electric utilities remain in effect if the General Assembly makes the policy decision to allow retail competition?

2. Which mechanisms are appropriate replacement mechanisms for the state gross receipts tax:

a. Corporate income tax on generation.

b. "Declining block" consumption tax

3. Should the "declining block" consumption tax include:
a. Local gross receipts taxes

b. State Corporation Commission special assessment

4. Describe the appropriate tax treatment for:
a. Investor-owned utilities

b. Electric cooperatives

c. Municipal electric systems

5. Which state agency should administer any tax program designed to
replace the current gross receipts tax?

6. What action should the General Assembly take to protect/preserve the current revenues received from real property taxes on generation facilities?

7. Who should perform assessments on property owned by suppliers of electricity?

8. What assessment method should be used on property owned by suppliers of electricity?

9. What action should the General Assembly take to protect/preserve the current revenues received from the consumer utility tax?

10. Who should collect and remit the consumer utility tax to localities?

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