Rockland’s new utility tax will impact some customers more than others and may not bring in as much revenue as estimated, according to a Journal News/LoHud.com report.
Staff writer Laura Incalcaterra recently examined the impact of the law that went into effect Saturday that increases taxes on electricity and natural gas by 4 percent.
However, the tax impact will vary by customer. Orange & Rockland Utilities Inc.’s 55,000 full-service customers who buy both from the utility will pay the full 4 percent or about $120 extra year. Those 45,000 O&R customers who buy power and gas from another supplier will pay the tax only on the supply portion, not the delivery fee, Incalcaterra reports. That amounts to about $48 a year.
Additionally, revenue estimates of $5.8 million from the tax in 2012 may have been based on all 100,000 O&R customers paying the full 4 percent tax. Because of that and other factors revenues may fall short of estimates, Rockland officials said.
To read Incalcaterra’s full report, click here.