Rhode Island 2023 Regular Session

Rhode Island House Bill H5312 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5312
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7	7	LC000978
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX
16	16	Introduced By: Representative Marvin L. Abney
17	17	Date Introduced: February 01, 2023
18	18	Referred To: House Finance
19	19	(Governor)
20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Chapter 44-13 of the General Laws entitled “Public Service Corporation Tax” 1
23	23	is hereby amended by adding thereto the following section: 2
24	24	44-13-37. Temporary relief from the gross earnings tax on electricity and gas. 3
25	25	(a) As used in this section: 4
26	26	(1) “Electric utility customer” means an individual or business who purchases electricity 5
27	27	from a utility company during any of the months between and including December 2022 through 6
28	28	March 2023. 7
29	29	(2) “Gas utility customer” means an individual or business who purchases natural gas from 8
30	30	a utility company during any of the months between and including December 2022 through March 9
31	31	2023. 10
32	32	(3) “Utility company” means any entity that qualifies as a “public service company” 11
33	33	pursuant to § 44-13-2.1 and a “corporation” for the purposes of § 44-13-4(2) or § 44-13-4(6) and 12
34	34	sells electricity to an electric utility customer or sells natural gas to a gas utility customer for any 13
35	35	of the months between and including December 2022 through March 2023. 14
36	36	(b)(1) A utility company may be eligible for a rebate payment in the amount of the public 15
37	37	service corporation tax due pursuant to § 44-13-4 that would be charged to its electric utility 16
38	38	customers or its gas utility customers for the months of December 2022 through March 2023. For 17
39	39	the months of December 2022 through March 2023: 18
40	40	(i) A utility company shall pay the public service corporation tax pursuant to, and in 19
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42	42
43	43	LC000978 - Page 2 of 4
44	44	accordance with, § 44-13-4; 1
45	45	(ii) A utility company shall not charge any electric utility customer or any gas utility 2
46	46	customer the tax due or paid pursuant to § 44-13-4, but shall continue to reflect the amount of the 3
47	47	tax due along with an offsetting credit on each bill for each electric utility customer or gas utility 4
48	48	customer. 5
49	49	(2) The rebate amount shall be determined by the division of taxation based on the 6
50	50	applicable tax paid by a utility company for electricity consumption by its electric utility customers 7
51	51	and/or for gas consumption by its gas utility customers between and including the months of 8
52	52	December 2022 and March 2023. 9
53	53	(3) The utility company must apply for a rebate on such forms and in such a manner as 10
54	54	prescribed by the division of taxation on or before May 31, 2023 and the rebate will be paid by the 11
55	55	division of taxation to the utility company. 12
56	56	(4) Rebate payments made under this subsection shall not be subject to offset and shall not 13
57	57	be considered gross earnings for the purposes of the public service corporation tax under this 14
58	58	chapter. 15
59	59	(5) In no event shall the rebate amount provided for in this section accrue interest for the 16
60	60	benefit of any utility company. The utility company shall not charge an electric utility customer or 17
61	61	a gas utility customer any fees or charges associated with the amounts qualifying for a rebate in 18
62	62	accordance with this section. 19
63	63	(6) In addition to all other penalties provided under Rhode Island state law, any utility 20
64	64	company that submits a fraudulent application or fails to otherwise comply with the terms of this 21
65	65	section for the December 2022 through March 2023 period shall pay a ten dollar ($10.00) penalty 22
66	66	per registered active account. The utility company shall pay any rebate amount fraudulently 23
67	67	received to the division of taxation and credit the electric utility customer or gas utility customer 24
68	68	for any amounts fraudulently or improperly claimed by the utility company and paid by the electric 25
69	69	utility customer or gas utility customer. The tax administrator shall have the same powers to collect 26
70	70	payment under this subsection as under title 44 of the general laws. 27
71	71	(7) If an electric utility customer or a gas utility customer erroneously pays to the utility 28
72	72	company the tax due for the December 2022 through March 2023 period, or any portion thereof, 29
73	73	the utility company must refund the customer within thirty (30) days of the customer remitting the 30
74	74	payment. 31
75	75	(8) If any provision of this section or the application thereof is held invalid, such invalidity 32
76	76	shall not affect the provisions of this section which can be given effect without the invalid 33
77	77	provisions. Notwithstanding this subsection, all other subsections of this chapter shall remain in 34
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81	81	full force and effect. 1
82	82	SECTION 2. This act shall take effect upon passage. 2
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84	84	LC000978
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88	88	LC000978 - Page 4 of 4
89	89	EXPLANATION
90	90	BY THE LEGISLATIVE COUNCIL
91	91	OF
92	92	A N A C T
93	93	RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX
94	94	***
95	95	This act would provide tax relief on electricity and natural gas for the months of December 1
96	96	2022 through March 2023. 2
97	97	This act would take effect upon passage. 3
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99	99	LC000978
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