2023 -- H 5630 ======== LC001485 ======== S TATE OF RHODE IS LAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2023 ____________ 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 LC001485 - Page 2 of 3 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 ======== LC001485 ======== LC001485 - Page 3 of 3 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX *** 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 ======== LC001485 ========