Alabama Municipal Electric Authority Power Supply Conference Point Clear, Alabama | 4.17.15
Jonathan Hand| Electric Cities of Alabama
2015 General Session Update What is Electric Cities of Alabama?
Based in Montgomery, Alabama
36 cities across the state representing over 1 million consumers
Government Relations
Disaster Assistance ECA’s 36 Member Cities
• Albertville • Huntsville • Alexander City • LaFayette • Andalusia • Lanett • Athens • Luverne • Bessemer • Muscle Shoals • Brundidge • Opelika • Courtland • Opp • Cullman • Piedmont • Decatur • Robertsdale • Dothan • Russellville • Elba • Scottsboro • Evergreen • Sheffield • Fairhope • Sylacauga • Florence • Tarrant • Foley • Troy • Fort Payne • Tuscumbia • Guntersville • Tuskegee • Hartford • Hartselle 2015 General Session Update
30 Legislative Days
14 Days into Session
Expected adjournment early to mid June
Special Session ECA’s Highest Priority
Oppose HB 276 – Municipal Utility License Tax Introduced by Oppose Representative Chris House Bill 276 England (D-Tuscaloosa) HB 276 would require any public, private or municipal utility corporation to pay the 2.2% license tax A closer look at the actual legislation
“Each person, firm, or corporation, including any corporations or municipalities operating an electric or hydroelectric public or private utility; or a gas public or private utility; or any privately owned and operated wastewater system…or any other public, private or municipal utility, whether now paying or not paying the 2.2% shall be subject to the provisions of this section…” Does this include Municipal Water & Sewer?
The Alabama Department of Revenue confirmed to ECA that this language did include municipal water and sewer Confirmed this was a tax on ALL municipal utilities Where does this money go?
64.3% would go to 35.7% 64.3% the Special Mental General Special Health Fund Fund Mental 35.7% would go to Health the General Fund Fund Current Situation:
HB 276 is before the House Committee on Steve Clouse Ken Johnson Laura Hall Elaine Beech Napoleon Bracy Ways and Means General Chairman Vice Chairman Fund Pending public hearing
Victor Gaston Lynn Greer Mike Holmes John Knight Paul Lee
Mike Millican Arnold Mooney Chris Sells Pebblin Warren Rich Wingo What action ECA has taken:
Met with House and Provided clarification of Senate leadership legislation text for members of the House Focused on the House Committee on Ways and Requested a public hearing Means General Fund Weekly updates to association Member cities activated Has stayed in touch with Committee members Response has been positive
Not voting for a tax…especially this one Impacts my constituents negatively This is dead – not to worry HB 276 Talking Points
Government taxing government
Tax on basic necessity of life
Not like purchasing a cigarette or an automobile
Raises rates on gas, water and wastewater in addition to electricity
Could raise garbage rates
Would increase utility rates for everyone – new business – existing business – and especially those on fixed or low incomes Governor’s talking points:
“This is a fair tax.”
“There is nothing more conservative than paying your debts and getting your financial house in order.”
“We will pass a tax hike, even if it takes 10 special sessions.” Questions regarding HB 276?
Contact Information
Jonathan Hand| 334.954.3221 [email protected]