2023 -- S 0867

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LC002673

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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: Senators DiPalma, Ciccone, Lombardo, Gallo, Sosnowski, and Felag

     Date Introduced: March 30, 2023

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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is hereby amended by adding thereto the following section:

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

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     (a) As used in this section:

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

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

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March 2023.

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

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

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2023.

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

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

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

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

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

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

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

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the months of December 2022 through March 2023:

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

 

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accordance with, § 44-13-4;

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

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

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

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customer.

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

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

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

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December 2022 and March 2023.

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

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

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division of taxation to the utility company. 

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

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

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chapter. 

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

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

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

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accordance with this section.

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

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

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

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

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

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

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

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

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

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

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

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payment.

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

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

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

 

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full force and effect.

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

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2022 through March 2023.

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     This act would take effect upon passage.

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