The Kansas City, MO, city government has voted to give naturalgas consumers some relief from high natural gas prices. The citycouncil voted last week to immediately repeal the residentialnatural gas section of an emergency utility tax that has beenimposed on consumers since 1952. The tax, which was enacted due toreasons that no one in the city council can currently recall,varied from 0.5%, up to 4% over the last 46 years.

In late September 2000, the city council voted unanimously toreduce the utility tax amount to zero over the next three years,but last week, they decided to abolish the residential natural gasutility tax immediately, while the other utility taxes such astelephone and electricity will follow the three year reductionstrategy.

“I became concerned after receiving reports that the projectedcost of natural gas may double the amount we paid last year,” saidCouncilman Jim Rowland, co-sponsor of the tax cut.

The council decided to remove the tax immediately due to theexpectations that the average household will use approximately90,000 cf of gas this winter. “Eliminating this tax is a steptowards assisting all citizens with an increasing expense,” saidRowland. “The emergency has passed and this tax has been paid bythe citizens long enough. When we can no longer remember the reasonfor the tax, and our economic times are good, let’s give thetaxpayers a break.”

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