THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SAYLOR, TURZAI, REED, PICKETT, ADOLPH, BAKER, BARRAR, BEAR, BEYER, BOYD, BROOKS, CAUSER, CIVERA, CREIGHTON, CUTLER, DALLY, EVERETT, FAIRCHILD, GEIST, GINGRICH, GROVE, HARRIS, HESS, HICKERNELL, HUTCHINSON, KAUFFMAN, M. KELLER, KILLION, MAJOR, METCALFE, MILLARD, MILLER, MOUL, MURT, PETRARCA, PETRI, PHILLIPS, PYLE, QUIGLEY, QUINN, READSHAW, REICHLEY, SCAVELLO, SIPTROTH, SONNEY, STERN, STEVENSON, SWANGER, VULAKOVICH AND WATSON, MARCH 19, 2009

REFERRED TO COMMITTEE ON FINANCE, MARCH 19, 2009  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in gross receipts tax, further providing for the

imposition of tax and for establishment or revenue-neutral

reconciliation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1101(b) of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, amended

July 13, 1987 (P.L.317, No.58), is amended to read:

Section 1101.  Imposition of Tax.--* * *

(b)  Electric Light, Waterpower and Hydro-electric

Utilities.--Every electric light company, waterpower company and

hydro-electric company now or hereafter incorporated or

organized by or under any law of this Commonwealth, or now or

hereafter organized or incorporated by any other state or by the

United States or any foreign government and doing business in

this Commonwealth, and every limited partnership, association,

joint-stock association, copartnership, person or persons,

engaged in electric light and power business, waterpower

business and hydro-electric business in this Commonwealth, shall

pay to the State Treasurer, through the Department of Revenue, a

tax of forty-four mills through December 31, 2009 upon each

dollar of the gross receipts of the corporation, company or

association, limited partnership, joint-stock association,

copartnership, person or persons, received from:

(1)  the sales of electric energy within this State, except

gross receipts derived from the sales for resale of electric

energy to persons, partnerships, associations, corporations or

political subdivisions subject to the tax imposed by this

subsection upon gross receipts derived from such resale; and

(2)  the sales of electric energy produced in Pennsylvania

and made outside of Pennsylvania in a state that has taken

action since December 21, 1977 which results in higher costs for

electric energy produced in that state and sold in Pennsylvania

unless the action that was taken after December 21, 1977 is

rescinded according to the following apportionment formula:

except for gross receipts derived from sales under clause (1),

the gross receipts from all sales of electricity of the producer

shall be apportioned to the Commonwealth of Pennsylvania by the

ratio of the producer's operating and maintenance expenses in

Pennsylvania and depreciation attributable to property in

Pennsylvania to the producer's total operating and maintenance

expenses and depreciation.

* * *

Section 2.  Section 1101.2 of the act, added June 29, 2002

(P.L.559, No.89), is amended to read:

Section 1101.2.  Establishment of Revenue-Neutral

Reconciliation.--(a)  Notwithstanding the provisions of 66

Pa.C.S. § 2810(c)(1) (relating to revenue-neutral

reconciliation), the rate of tax established under 66 Pa.C.S. §

2810(c)(2) for the period beginning January 1, 2002, shall

continue in force without further adjustment for periods

beginning January 1, 2003, and [thereafter] ending December 31,

2009, and the Secretary of Revenue shall not deliver any further

reports under 66 Pa.C.S. § 2810(c)(3).

(b)  Notwithstanding the provisions of 66 Pa.C.S. § 2810(c)

(1):

(1)  For the period beginning January 1, 2010, through

December 31, 2010, the rate of tax shall be 13.5 mills.

(2)  For the period beginning January 1, 2011, through

December 31, 2011, the rate of tax shall be 12.0 mills.

(3)  For the period beginning January 1, 2012, through

December 31, 2012, the rate of tax shall be 10.5 mills.

(4)  For the period beginning January 1, 2013, through

December 31, 2013, the rate of tax shall be 9.0 mills.

(5)  For the period beginning January 1, 2014, and

thereafter, the rate of tax shall be 7.5 mills.

Section 3.  The act is amended by adding a section to read:

Section 1101.3.  Electric Light, Waterpower and Hydro-

electric Utilities Rate Schedule.--The tax imposed under section

1101(b) shall be imposed as follows:

(1)  For periods beginning on or after January 1, 2010, and

on or before December 31, 2010, the rate of tax shall be 39.6

mills.

(2)  For periods beginning on or after January 1, 2011, and

on or after December 31, 2011, the rate of the tax shall be 35.2

mills.

(3)  For periods beginning on or after January 1, 2012, and

on or before December 31, 2012, the rate of tax shall be 30.8

mills.

(4)  For periods beginning on or after January 1, 2013, and

on or before December 31, 2013, the rate of tax shall be 26.4

mills.

(5)  For periods beginning on or after January 1, 2014, and

thereafter, the rate of tax shall be 22 mills.

Section 4.  This act shall take effect in 60 days.