As part of an overall plan to phase out utility taxes, the city has dropped gas taxes for residential customers, City Manager Kevin Murphy said.
Deletion of the gas tax was approved by the City Council last May and became effective Jan. 1, Murphy said. Tax savings will be reflected in residential gas bills in January or February.
The city adopted 5% taxes on water, electricity, gas, telephone and cable television in 1983. Murphy said the taxes were approved because of a recession and reductions in state and federal funding.
As new development projects generated additional property and sales taxes, the city began phasing out portions of the utility tax, he said. The utility tax on water was eliminated in 1987 and the one on electricity was phased out in 1988.