Tax Increase On Electricity Means Higher Utility Bills

A new state tax law has gone into effect and your utility bills are going up as a result.

Effective July 1, the state sales tax rate on electricity jumped from 3 percent to 7 percent.

Greenville Utilities Commission says that means the average electric customer in Greenville will pay about $5.00 more per month.

The tax on natural gas is set at 3 and a half percent this year, and will also move to 7 percent at this time next year.

The tax increases apply to all North Carolina utility customers regardless of where you live.

The changes are a result of the North Carolina Tax Simplification and Reduction Act which was signed into law last summer.

Customers we spoke with, like Marlon Wooten, say they don't think the changes were necessary.

Wooten says, "Big government tries to pry every dollar out of your purse and out of your pocket. I think it's just a way for them to cover up there own mistakes by squeezing more money. I think it's uncalled for. I think there's other ways that they can go about getting their money. I just feel that it's, it's just gone way too far."

The Department of Revenue says that expanding the sales tax base will cover reductions in income tax also included in the legislation.