2023 -- H 5630
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LC001485
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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: 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 1
Service Corporation Tax" is hereby amended to read as follows: 2
44-13-4. Rate of taxation. 3
The tax imposed will be at the following rates: 4
(1) In the case of every corporation whose principal business is a steamboat or ferryboat 5
business as a common carrier, every common carrier steam or electric railroad corporation, every 6
street railway corporation, every common carrier dining, sleeping, chair, or parlor car corporation, 7
every corporation whose principal business is selling and distributing water to the public, and every 8
toll bridge corporation, one and one-fourth percent (1.25%) of its gross earnings; 9
(2) In the case of every corporation whose principal business is manufacturing, selling, 10
distributing and/or transmitting currents of electricity to be used for light, heat, or motive power, 11
four percent (4%) of its gross earnings, but deductions shall be made of gross earnings from the 12
transmission or sale of electricity to other public utility corporations, non-regulated power 13
producers, or municipal utilities for resale, whether within or outside of this state; provided, that 14
the tax measured by the portion of the utility’s gross earnings as is derived from the manufacture 15
and sale of illuminating and heating gas and its by-products and the merchandising of gas 16
appliances shall be computed at the rate of three percent (3%); 17
(3) In the case of every express corporation carrying on its business on steamboats, steam 18
or electric railroads, or street railways and of every public service corporation whose principal 19
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business is that of a telegraph corporation, four percent (4%) of its gross earnings; 1
(4) In the case of every telecommunications corporation providing telecommunications 2
service, ten percent (10%) of its gross earnings; provided, that the rate shall be nine percent (9%) 3
effective July 1, 1985, eight percent (8%) effective July 1, 1986, seven percent (7%) effective July 4
1, 1987, six percent (6%) effective July 1, 1988, and five percent (5%) effective July 1, 1997. For 5
purposes of this chapter, “telecommunications service” means the transmission of any interactive 6
two-way electromagnetic communications including voice, image, data, and other information, by 7
means of wire, cable, including fiber optical cable, microwave, and radio wave, or any 8
combinations of these media. This definition does not include value added non-voice services in 9
which computer processing applications are used to act on the form, content, code, and protocol of 10
the information to be transmitted; and 11
(5) In the case of every public service cable corporation, eight percent (8%) of its gross 12
earnings;. 13
(6) In the case of every corporation whose principal business is manufacturing, selling 14
and/or distributing to the public illuminating or heating gas, three percent (3%) of its gross earnings. 15
SECTION 2. This act shall take effect upon passage. 16
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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 1
business is manufacturing, selling, distributing and/or transmitting currents of electricity and 2
natural gas to be used for light, heat, or motive power. 3
This act would take effect upon passage. 4
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