2023 -- H 5630

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LC001485

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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: Representatives P. Morgan, Fenton-Fung, Rea, Nardone, Roberts,
Azzinaro, Lima, Perez, Messier, and J. Brien

     Date Introduced: February 15, 2023

     Referred To: House Finance

     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%);

     (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; and

     (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 eliminate the gross earnings tax for every corporation whose principal

business is manufacturing, selling, distributing and/or transmitting currents of electricity and

natural gas to be used for light, heat, or motive power.

     This act would take effect upon passage.

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