PRINTER'S NO. 3258
No. 2410 Session of 1976
INTRODUCED BY WAGNER AND HASAY, MAY 25, 1976
REFERRED TO COMMITTEE ON FINANCE, MAY 25, 1976
AN ACT
1 To provide for the levying of an intrastate electrical energy
2 tax on electricity generated in the Commonwealth used outside
3 the power district generating the electricity; for a credit
4 to the gross receipts tax of the district generating the
5 electricity; and imposing powers and duties on the Department
6 of Revenue.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short Title.--This act shall be known and may be
10 cited as the "Intrastate Electric Energy Tax Act."
11 Section 2. Declaration of Policy.--In recognition of the
12 severe economic plight of citizens of the Commonwealth who are
13 faced with rising living costs and costs of doing business and
14 increasing electric utility bills, there is hereby levied an
15 intrastate electric energy tax effective until the total price
16 per kilowatt hour of electric energy returns to the level that
17 prevailed in September, 1973 to be used to reduce electric
18 utility costs in power districts generating the electricity
19 where land has been set aside to support power generating
20 plants.
1 Section 3. Definitions.--As used in this act:
2 "Department" means the Pennsylvania Department of Revenue.
3 "Electricity" includes electrical energy and electrical
4 power.
5 "Electric power district" means the area in which a person
6 supplies electricity.
7 "Generation" includes manufacture and production.
8 "Person" means any individual, estate, trust, receiver,
9 cooperative association, club, corporation, company, firm,
10 partnership, joint venture, syndicate, association, a utility
11 owned or operated by a municipality. It also means, to the
12 extent permitted by law, any Federal, State or other
13 governmental unit, subdivision, agency, department or
14 instrumentality.
15 "Sale" means selling or transferring to any person for
16 consumption, use or resale and includes barter and exchange.
17 Section 4. Imposition of Tax; Rate.--(a) For the privilege
18 of purchasing electricity for an electric power district in this
19 Commonwealth from other power district or districts in the
20 Commonwealth generating such electricity for the purpose of sale
21 to the purchasing district, there is imposed on any person
22 purchasing such electricity for resale, a tax of four tenth of
23 one mill on each net kilowatt hour of electricity so purchased
24 by a power district not generating the electricity.
25 (b) The tax imposed by this section shall be referred to as
26 the intrastate electric energy tax.
27 Section 5. Kilowatt Hours of Electricity.--Persons subject
28 to the imposition of the intrastate electric energy tax shall
29 maintain accurate measuring devices and records to measure and
30 record the daily and cumulative monthly and yearly totals of
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1 kilowatt hours of electricity purchased by the power district.
2 Section 6. Reports; Remittances.--Every person subject to
3 the imposition of the intrastate electric energy tax shall file
4 a return under oath or affirmation on forms provided by and with
5 the information required by the department and shall pay the tax
6 due annually on or before January 31 for the preceding calendar
7 year. The time for filing returns may be extended, estimated
8 settlements may be made by the Department of Revenue if returns
9 are not filed, and the penalties for failing to file returns and
10 pay the tax shall be as prescribed by the laws defining the
11 powers and duties of the Department of Revenue.
12 Section 7. Relief from Other Taxes.--Unless otherwise
13 specified by statute the imposition of the intrastate electric
14 energy tax shall not act to relieve any person from any other
15 tax levied by the Commonwealth.
16 Section 8. Receipts.--All moneys received from the
17 intrastate electric energy tax shall be deposited in the General
18 Fund.
19 Section 9. Credit; Gross Receipts.--(a) On electricity
20 purchased by an electric power district of the Commonwealth from
21 an electric power district generating such electricity which is
22 subject to the intrastate electric energy tax, a credit of four
23 tenths of one mill on each net kilowatt hour of electricity so
24 purchased during a calendar year shall be credited annually on
25 or before April 15 against the gross receipts due the
26 Commonwealth for the same calendar year from the power district
27 generating the electricity.
28 (b) The credit under subsection (a) is given to the person
29 liable for the gross receipts tax for the power district
30 generating the electricity taxed.
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1 (c) An amount equal to the credit under subsection (a) taken
2 against the gross receipts tax shall be distributed annually on
3 or after April 15 to the customers of the power district
4 generating the purchased electric power subject to the tax
5 imposed by this act.
6 Section 10. Tax Forms and Rules and Regulations.--The
7 department shall make available suitable tax return forms for
8 paying the tax and prescribe such rules and regulations as are
9 necessary to carry out the provisions of this act.
10 Section 11. Effective Date.--This act shall take effect
11 immediately and shall be retroactive to July 1, 1975.
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