Potsdam Company Praises Plan To Cut Energy Tax

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It takes a lot of energy to keep an industry like Potsdam Specialty Paper operating.

High energy bills and taxes placed on electricity and natural gas can quickly eat into a company's profit margin.

"The natural gas and the electricity is a very large component of our budgets and to add an additional burden to those, just takes a little bit more away from the bottom line when margins are very, very tight to begin with," said Ronald Charette, Potsdam Specialty Paper general manager.                                  

Potsdam Paper, like other businesses, have been paying the 2 percent utility tax surcharge, known as 18-A, for the past four years after legislation was adopted by the state legislature and signed by then-Governor David Paterson.

The energy tax surcharge was enacted in 2009 and costs large businesses as much as $30,000 a year.

Under the Cuomo administration's plan, the 2 percent tax levied on electric, gas, water and steam utility bills for industrial customers, like Potsdam Specialty Paper, would be eliminated this year.
 
"I'm very, very supportive of the change and specifically of the 18-A tax," said Charette.

Under Cuomo's proposed budget, the 18-A surcharge would be eliminated to provide immediate tax relief to energy intensive industries and companies like Potsdam Specialty Paper while residential customers, who also pay the tax, would see an accelerated phase out of the tax.

Friday, October 31, 2014
, Watertown, NY

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