State and local government taxes make up more than a quarter of New York electric bills, according to a new report by the Public Policy Institute, the research affiliate of The Business Council of New York State, Inc. entitled “Short-circuiting New York’s Recovery-How Energy Taxes Contribute to High Electric Rates in New York”.

New York’s power industry paid an estimated $6.367 billion in state and local taxes, assessments and fees in 2009. The figure is $853 million higher than the total the industry paid in 2008. The increase is notable: in 2009 state and local governments in New York raised taxes on electricity by more than 15% — and did this during the worst economic crisis since the Great Depression.

State and local governments have turned the energy industry in New York into a tax collecting operation leaving rate-payers with ever-growing bills even when energy commodity prices fall. On average, more than one-quarter of customers’ electric bills in New York is made up of state and local taxes. Increased taxes and fees have more than made up for the 18 percent drop in wholesale electricity costs since 2000.

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