AUGUSTA – On Tuesday, Feb. 10, the Legislature’s Taxation Committee unanimously voted to advance an amended version of a bill sponsored by Rep. Kilton Webb, D-Durham, aimed at lowering Mainers’ electricity costs.
As amended, LD 2078 would create a sales tax exemption on all electricity sold and delivered to residential homes throughout the state. Under current law, only the first 750kw of electricity delivered to homes each month is exempt from sales tax.
“As an electrician, I have seen firsthand how the price of electricity continues to climb, seemingly with no end in sight,” said Webb. “I introduced this bill to be a proactive solution, knowing that it won’t stop electricity rates from rising, but that it will ease the cost for families just trying to keep the lights on.”
Maine has seen significant increases in the cost of electricity over the last several years, largely as a result of the region's dependence on natural gas to produce electricity. The price of natural gas specifically used for electricity generation is up 37%, resulting in a direct impact on the state’s electricity rates. The Public Advocate has stated that Mainers should expect at least a $150 increase in the average electricity bill this year, on top of significant increases last year.
“As the cost of living continues to rise, the Legislature must prioritize lowering costs, which is exactly what this bill intends to do,” said Webb. “By passing this bill, we have an opportunity to cut taxes for the hardworking Mainers in our state and help make electricity bills a little bit more affordable.”
The bill will be sent to the full House and Senate for further action in the coming weeks.
Rep. Kilton Webb is serving his first term in the Maine House and represents House District 98, which includes Durham, Pownal and portions of Lisbon, Bowdoin and Topsham. He serves on the Legislature's Energy, Utilities and Technology Committee.
Contact:
Brian Lee (Webb) | 305-965-2744