Utilities Tax

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The City charges a utility tax on electric, natural gas, water and telecommunication usage as allowed by state statue. The City has home rule authority to raise these rates however the state limits the amount of tax that can be charged. The city is currently charging approximately half of the statutory limit allowed for each tax component.

Taxes are charged to consumers by the utility providing the services and later remitted to the City. The Telecommunications tax is remitted to the State of Illinois. Consumers will see increased taxes on their individual utility bills as of the first monthly billing possible as implemented by each utility company.

Electric taxes are collected by both Ameren and Cornbelt. State statute requires that this tax be charged on consumption. Consumption is taxed in ranges of kilowatts per hour where tax declines as usage increases.

Natural gas tax is collect by Nicor for both in and out of state purchases and is charged as a percentage of gross charges for in- state purchases or cents per therm on out-of –state purchases.

Tax on telecommunications (cell phones and land lines) is charged as a percent of gross charges by the prospective phone companies and remitted to the state which is later forwarded to the City.

The tax on Water is charged to the consumer as a percent of gross charges by the City’s own water utility and then forwarded to the City’s General Fund.

Utility Rates as of April 28, 2014
Utility Component  Charge Method  Old Rate  New Rate   Statutory Limit 
Electric  kilowatt per hour   .2777/.1366   .4439/.2183  .6100/.3000 
Natural Gas ( in State)  % of gross charges 2.5%  3.75%  5.0% 
Natural Gas ( out of State)  cents per therm  .75¢  1.9¢  5¢ 
Telecommunications  % of gross charges  3.5%  6.0%  6.0% 
Water  % of gross charges   2.5%  3.75%  5.0%