2023 -- H 5312
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LC000978
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S TATE OF RHODE IS LAND
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” 1
is hereby amended by adding thereto the following section: 2
44-13-37. Temporary relief from the gross earnings tax on electricity and gas. 3
(a) As used in this section: 4
(1) “Electric utility customer” means an individual or business who purchases electricity 5
from a utility company during any of the months between and including December 2022 through 6
March 2023. 7
(2) “Gas utility customer” means an individual or business who purchases natural gas from 8
a utility company during any of the months between and including December 2022 through March 9
2023. 10
(3) “Utility company” means any entity that qualifies as a “public service company” 11
pursuant to § 44-13-2.1 and a “corporation” for the purposes of § 44-13-4(2) or § 44-13-4(6) and 12
sells electricity to an electric utility customer or sells natural gas to a gas utility customer for any 13
of the months between and including December 2022 through March 2023. 14
(b)(1) A utility company may be eligible for a rebate payment in the amount of the public 15
service corporation tax due pursuant to § 44-13-4 that would be charged to its electric utility 16
customers or its gas utility customers for the months of December 2022 through March 2023. For 17
the months of December 2022 through March 2023: 18
(i) A utility company shall pay the public service corporation tax pursuant to, and in 19
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accordance with, § 44-13-4; 1
(ii) A utility company shall not charge any electric utility customer or any gas utility 2
customer the tax due or paid pursuant to § 44-13-4, but shall continue to reflect the amount of the 3
tax due along with an offsetting credit on each bill for each electric utility customer or gas utility 4
customer. 5
(2) The rebate amount shall be determined by the division of taxation based on the 6
applicable tax paid by a utility company for electricity consumption by its electric utility customers 7
and/or for gas consumption by its gas utility customers between and including the months of 8
December 2022 and March 2023. 9
(3) The utility company must apply for a rebate on such forms and in such a manner as 10
prescribed by the division of taxation on or before May 31, 2023 and the rebate will be paid by the 11
division of taxation to the utility company. 12
(4) Rebate payments made under this subsection shall not be subject to offset and shall not 13
be considered gross earnings for the purposes of the public service corporation tax under this 14
chapter. 15
(5) In no event shall the rebate amount provided for in this section accrue interest for the 16
benefit of any utility company. The utility company shall not charge an electric utility customer or 17
a gas utility customer any fees or charges associated with the amounts qualifying for a rebate in 18
accordance with this section. 19
(6) In addition to all other penalties provided under Rhode Island state law, any utility 20
company that submits a fraudulent application or fails to otherwise comply with the terms of this 21
section for the December 2022 through March 2023 period shall pay a ten dollar ($10.00) penalty 22
per registered active account. The utility company shall pay any rebate amount fraudulently 23
received to the division of taxation and credit the electric utility customer or gas utility customer 24
for any amounts fraudulently or improperly claimed by the utility company and paid by the electric 25
utility customer or gas utility customer. The tax administrator shall have the same powers to collect 26
payment under this subsection as under title 44 of the general laws. 27
(7) If an electric utility customer or a gas utility customer erroneously pays to the utility 28
company the tax due for the December 2022 through March 2023 period, or any portion thereof, 29
the utility company must refund the customer within thirty (30) days of the customer remitting the 30
payment. 31
(8) If any provision of this section or the application thereof is held invalid, such invalidity 32
shall not affect the provisions of this section which can be given effect without the invalid 33
provisions. Notwithstanding this subsection, all other subsections of this chapter shall remain in 34
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full force and effect. 1
SECTION 2. This act shall take effect upon passage. 2
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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 1
2022 through March 2023. 2
This act would take effect upon passage. 3
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LC000978
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