2015 -- S 0400

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LC001675

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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: Senators Jabour, Metts, Lombardi, Archambault, and Pichardo

     Date Introduced: February 25, 2015

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. 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

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%); provided, further, that the tax

imposed on the energy charge or standard offer charge on an electric bill rendered by

Narragansett Electric Company d/b/a National Grid or Pascoag utility district shall not be

calculated on charges in excess of the standard offer rate in effect on December 31, 2014;

      (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%)

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;

      (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 2. This act shall take effect upon passage.

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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 exclude from the calculation of gross receipt taxes for public service

corporations, the energy charge that exceeds the standard rate offer in effect on December 31,

2014.

     This act would take effect upon passage.

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LC001675

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