Representatives Marshall and Heap have called for the elimination of taxes on electric and gas utilities in Arizona, arguing that this measure would provide immediate financial relief to residents. Representative Marshall stated, “People are getting crushed by rising costs, making it harder to live and do business in our state. Almost everyone pays a local utility for electric or gas. Eliminating the tax on this expense represents one of the most immediate and direct ways we can help working families keep costs affordable.”
Currently, monthly utility bills in Arizona include an additional 5.6 percent tax, which increases the overall cost for consumers. According to Marshall, average residents pay over $100 each year solely in utility taxes.
Marshall further commented, “Taxing electric and gas utilities creates a perverse incentive for the government to support increased rate hikes. If rates go up, the state gets more money. That leads some to view rate increases as a source of potential funds for their liberal pet projects. That’s not right; it’s time to put the people of Arizona first.”
Representative Heap criticized renewable energy surcharges implemented in 2006 by then-Arizona Corporation Commissioner Kris Mayes, stating, “In 2006, Arizona Corporation Commissioner Kris Mayes catered to outside special interests and adopted expensive renewable energy surcharges that cost ratepayers more than $2.3 billion over the last 20 years. This special interest slush fund also led to foreign-owned boondoggles like the Solana Generating Station, which Kris Mayes personally supported, and which cost ratepayers more than three times the above-market rate of power.”
Heap added that repealing these mandates may prevent future costs but does not address compensation for past surcharges: “While repealing these mandates may help to prevent new costs, it will do nothing to compensate customers for the unjust surcharges that Kris Mayes forced ratepayers to pay over the last 20 years.”
Marshall concluded by suggesting alternatives: “While we’re unsure of any legal way to get ratepayers’ money back, there are things we can do to help reduce costs today. In my opinion, the next best thing we can do is try to provide justice by eliminating taxes on electric and gas utilities moving forward.”
Carbone was elected as a Republican representative for Arizona’s 25th House District in 2023.
