Due to their regressive nature, raising state and local sales taxes should not be the first choice for increasing tax revenues.
States and localities should include services in the taxable base to reduce regressivity and improve neutrality.
Exemptions from state retail sales taxes should be narrowly designed to reduce their regressive nature and avoid pyramiding.
Property taxes should be equitable.
States and localities should carefully evaluate the effectiveness of the incentives they offer to attract or retain businesses.
When considering bond financing, state and local policymakers should:
Policymakers should establish rights and protections for customers who face possible termination of service.
Policymakers should prohibit fees for the disconnection or reconnection of customers. If fees are allowed, they should be based on actual utility costs.
Policymakers should ensure strong consumer protections against unfair, deceptive, or abusive acts and practices related to Property Assessed Clean Energy (PACE) loans.
State policymakers should establish a definition of “universal service” for the energy industry that is similar to the one in the Telecommunications Act of 1996.