2023 -- H 5312

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LC000978

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX

     Introduced By: Representative Marvin L. Abney

     Date Introduced: February 01, 2023

     Referred To: House Finance

     (Governor)

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-13 of the General Laws entitled “Public Service Corporation Tax”

is hereby amended by adding thereto the following section:

     44-13-37. Temporary relief from the gross earnings tax on electricity and gas.

     (a) As used in this section:

     (1) “Electric utility customer” means an individual or business who purchases electricity

from a utility company during any of the months between and including December 2022 through

March 2023.

     (2) “Gas utility customer” means an individual or business who purchases natural gas from

a utility company during any of the months between and including December 2022 through March

2023.

     (3) “Utility company” means any entity that qualifies as a “public service company”

pursuant to § 44-13-2.1 and a “corporation” for the purposes of § 44-13-4(2) or § 44-13-4(6) and

sells electricity to an electric utility customer or sells natural gas to a gas utility customer for any

of the months between and including December 2022 through March 2023. 

     (b)(1) A utility company may be eligible for a rebate payment in the amount of the public

service corporation tax due pursuant to § 44-13-4 that would be charged to its electric utility

customers or its gas utility customers for the months of December 2022 through March 2023. For

the months of December 2022 through March 2023:

     (i) A utility company shall pay the public service corporation tax pursuant to, and in

accordance with, § 44-13-4;

     (ii) A utility company shall not charge any electric utility customer or any gas utility

customer the tax due or paid pursuant to § 44-13-4, but shall continue to reflect the amount of the

tax due along with an offsetting credit on each bill for each electric utility customer or gas utility

customer.

     (2) The rebate amount shall be determined by the division of taxation based on the

applicable tax paid by a utility company for electricity consumption by its electric utility customers

and/or for gas consumption by its gas utility customers between and including the months of

December 2022 and March 2023.

     (3) The utility company must apply for a rebate on such forms and in such a manner as

prescribed by the division of taxation on or before May 31, 2023 and the rebate will be paid by the

division of taxation to the utility company. 

     (4) Rebate payments made under this subsection shall not be subject to offset and shall not

be considered gross earnings for the purposes of the public service corporation tax under this

chapter. 

     (5) In no event shall the rebate amount provided for in this section accrue interest for the

benefit of any utility company. The utility company shall not charge an electric utility customer or

a gas utility customer any fees or charges associated with the amounts qualifying for a rebate in

accordance with this section.

     (6) In addition to all other penalties provided under Rhode Island state law, any utility

company that submits a fraudulent application or fails to otherwise comply with the terms of this

section for the December 2022 through March 2023 period shall pay a ten dollar ($10.00) penalty

per registered active account. The utility company shall pay any rebate amount fraudulently

received to the division of taxation and credit the electric utility customer or gas utility customer

for any amounts fraudulently or improperly claimed by the utility company and paid by the electric

utility customer or gas utility customer. The tax administrator shall have the same powers to collect

payment under this subsection as under title 44 of the general laws. 

     (7) If an electric utility customer or a gas utility customer erroneously pays to the utility

company the tax due for the December 2022 through March 2023 period, or any portion thereof,

the utility company must refund the customer within thirty (30) days of the customer remitting the

payment.

     (8) If any provision of this section or the application thereof is held invalid, such invalidity

shall not affect the provisions of this section which can be given effect without the invalid

provisions. Notwithstanding this subsection, all other subsections of this chapter shall remain in

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full force and effect.

     SECTION 2. This act shall take effect upon passage.

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LC000978

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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 tax relief on electricity and natural gas for the months of December

2022 through March 2023.

     This act would take effect upon passage.

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LC000978

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