2015 -- H 5340

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LC000861

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX

     Introduced By: Representatives Filippi, Shekarchi, Edwards, Solomon, and Reilly

     Date Introduced: February 05, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 39-1 of the General Laws entitled "Public Utilities Commission" is

hereby amended by adding thereto the following section:

     39-1-63. Moratorium on taxes due to electric rate increases that pass through to

customers. -- (a) Notwithstanding the provision of any statute, law, ordinance, rule or regulation

to the contrary, any increase in rate greater than that in effect on December 31, 2014, which shall

be allowed by the public utilities commission to every corporation whose principal business is

manufacturing, selling, distributing and/or transmitting electricity to be used for light, heat or

motive power, shall be exempt from the public service corporation tax and the sales tax which are

applied, imposed upon or passed through to customers.

     (b) The provisions of this section shall apply to, but are not limited to, taxes, tariffs,

charges and/or increases imposed pursuant to the following:

     (1) Charges pursuant to the low income home energy assistance program (LIHEAP,) §

39-1-27.12;

     (2) Transition charges pursuant to § 39-1-27.4;

     (3) Renewable energy charges pursuant to § 39-26-4;

     (4) Tariffs proposed and approved pursuant to the renewable energy growth program, §

39-26.6-5;

     (5) Increases relating to distribution generation contracts in accordance with chapter 26.2

of this title;

     (6) Fees associated with distribution generation interconnection pursuant to chapter 26.3

of this title;

     (7) Increases relating to long-term contracts pursuant to the affordable clean energy

security act, § 39-31-1 et seq.; and

     (8) Taxes imposed pursuant to the public service corporation tax § 44-13-4.

     (c) Every invoice sent by such corporations shall clearly indicate that such tax, charge,

tariff or fee is not being collected or imposed on customers.

     SECTION 2. Section 44-13-4 of the General Laws in Chapter 44-13 entitled "Public

Service Corporation Tax" is hereby amended to read as follows:

     44-13-4. Rate of taxation. -- The tax imposed will be at the following rates:

      (1) In the case of every corporation whose principal business is a steamboat or ferryboat

business as a common carrier, every common carrier steam or electric railroad corporation, every

street railway corporation, every common carrier dining, sleeping, chair, or parlor car

corporation, every corporation whose principal business is selling and distributing water to the

public, and every toll bridge corporation, one and one-fourth percent (1.25%) of its gross

earnings;

      (2) In the case of every corporation whose principal business is manufacturing, selling,

distributing and/or transmitting currents of electricity to be used for light, heat, or motive power,

four percent (4%) of its gross earnings, but deductions shall be made of gross earnings from the

transmission or sale of electricity to other public utility corporations, non-regulated power

producers, or municipal utilities for resale, whether within or outside of this state; provided, that

neither the tax imposed by this section, nor the sales tax, shall be collected or imposed on or

applied to any rates or charges of whatever sort which shall be granted to such corporation and

are greater than those in effect on December 31, 2014, and which are applied, imposed upon or

passed through to customers; and provided, further, that the tax measured by the portion of the

utility's gross earnings as is derived from the manufacture and sale of illuminating and heating

gas and its by-products and the merchandising of gas appliances shall be computed at the rate of

three percent (3%); and provided further, every invoice sent by such corporations shall clearly

indicate that such tax is not being collected or imposed on customers;

      (3) In the case of every express corporation carrying on its business on steamboats,

steam or electric railroads, or street railways and of every public service corporation whose

principal business is that of a telegraph corporation, four percent (4%) of its gross earnings;

      (4) In the case of every telecommunications corporation providing telecommunications

service, ten percent (10%) of its gross earnings; provided, that the rate shall be nine percent (9%)

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effective July 1, 1985, eight percent (8%) effective July 1, 1986, seven percent (7%) effective

July 1, 1987, six percent (6%) effective July 1, 1988, and five percent (5%) effective July 1,

1997. For purposes of this chapter, "telecommunications service" means the transmission of any

interactive two-way electromagnetic communications including voice, image, data, and other

information, by means of wire, cable, including fiber optical cable, microwave, and radio wave,

or any combinations of these media. This definition does not include value added non-voice

services in which computer processing applications are used to act on the form, content, code, and

protocol of the information to be transmitted;

      (5) In the case of every public service cable corporation, eight percent (8%) of its gross

earnings; and

      (6) In the case of every corporation whose principal business is manufacturing, selling

and/or distributing to the public illuminating or heating gas, three percent (3%) of its gross

earnings.

     SECTION 3. This act shall take effect upon passage and be retroactive to December 31,

2014.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX

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     This act would provide that neither the public service corporation tax or the sales tax,

which are paid by customers, would apply to any increase in electricity rates or charges which are

greater than those in effect on December 31, 2014.

     This act would take effect upon passage and be retroactive to December 31, 2014.

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