2014 -- S 2582

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LC004837

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO SALES AND USE TAXES - LIABILITY AND COMPUTATION

     

     Introduced By: Senator Erin P.Lynch

     Date Introduced: March 04, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes -

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Liability and Computation" is hereby amended by adding thereto the following section:

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     44-18-25.1. Presumptions concerning the use of certain electricity, gas and other

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fuels furnished to residential premises. – (a) Notwithstanding the provisions of § 44-18-25 to

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the contrary: (1) In the case of electricity, gas or other fuel furnished by a public utility under a

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residential heating tariff, the retailer shall be entitled to presume, conclusively, that such fuel is

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"used in the heating of homes and residential premises" within the meaning of § 44-18-30(20).

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     (2) In the case of electricity, or gas furnished by a public utility under a residential non-

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heating tariff, the retailer shall be entitled to presume, conclusively, that such electricity or gas is

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"furnished for domestic use by occupants of residential premises" within the meaning of § 44-18-

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30(21).

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     (3) In the case of electricity or gas furnished by a public utility to a meter that is classified

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on the retailer’s books and records as a meter for residential premises, the retailer shall be entitled

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to presume, conclusively, that such electricity or gas is "furnished for domestic use by occupants

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of residential premises" within the meaning of § 44-18-30(21).

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     (b) In determining whether electricity, gas or other fuel is "used in the heating of homes

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and residential premises" within the meaning of § 44-18-30(20) or whether electricity or gas is

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"furnished for domestic use by occupants of residential premises" within the meaning of § 44-18-

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30(21), a retailer that in good faith accepts a purchaser’s representation of residential use shall be

 

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entitled to a conclusive presumption of such use.

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     (c) The presumptions set forth in this section shall not affect the purchaser’s burden of

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proof in an examination of the purchaser’s liability for use tax, as to applicability of any

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exemption.

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     (d) In applying this section, a "public utility" shall mean a public utility as defined in §

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39-1-2(20) or an electric transmission company described in § 39-1-2(13).

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     SECTION 2. This act shall take effect upon passage and shall apply to all tax periods that

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on or after such date are open for assessment under § 44-19-13, are the subject of a hearing under

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§ 44-19-17, or are the subject of an appeal under § 44-19-18.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO SALES AND USE TAXES - LIABILITY AND COMPUTATION

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     This act would establish certain presumptions concerning the use of electricity, gas or

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other fuel furnished by a public utility for the purpose of computing sales and use taxes.

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     This act would take effect upon passage and would apply to all tax periods that on or

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after such date are open for assessment under § 44-19-13, are the subject of a hearing under § 44-

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19-17, or are the subject of an appeal under § 44-19-18.

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LC004837

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LC004837 - Page 3 of 2