PRINTER'S NO. 1608
No. 1353 Session of 1977
INTRODUCED BY WAGNER, JUNE 20, 1977
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 20, 1977
AN ACT
1 To provide for the levying of an emergency tax on electricity
2 generated in the Commonwealth, creating the Electric Utility
3 Service Assistance Fund and providing for electric utility
4 service assistance to certain senior citizens and permanently
5 disabled persons with limited income; establishing uniform
6 standards and qualifications to receive assistance; and
7 imposing powers and duties upon the Department of Revenue.
8 TABLE OF CONTENTS
9 Section 1. Short title.
10 Section 2. Declaration of policy.
11 Section 3. Definitions.
12 Section 4. Imposition of tax.
13 Section 5. Measurement and recording of kilowatt hours of
14 electricity.
15 Section 6. Reports; remittances.
16 Section 7. Relief from other taxes.
17 Section 8. Receipts; disbursements; distribution.
18 Section 9. Credit; gross receipts tax.
19 Section 10. Electric utility service assistance.
20 Section 11. Filing of claim.
21 Section 12. Proof of claim.
1 Section 13. Incorrect claim.
2 Section 14. Claim forms; rules and regulations.
3 Section 15. Fraudulent claim; conveyance to obtain benefits.
4 Section 16. Petition for redetermination.
5 Section 17. Review by Board of Finance and Revenue.
6 Section 18. Appeal to the Commonwealth Court.
7 Section 19. Legislative intent.
8 Section 20. Effective date.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Short title.
12 This act shall be known and may be cited as the "Emergency
13 Electrical Energy Tax Act."
14 Section 2. Declaration of policy.
15 In recognition of the severe economic plight of certain
16 senior citizens and permanently disabled persons with limited
17 incomes who are faced with rising living costs and increasing
18 utility bills, there is hereby levied an emergency electric
19 energy tax and enacted a concomitant program of electric service
20 assistance which will relieve such citizens of a portion of
21 their increased burden of electric utility charges.
22 Section 3. Definitions.
23 The following words and phrases when used in this act shall
24 have, unless the context clearly indicates otherwise, the
25 meanings given to them in this section:
26 "Claimant." A person who files a claim for electric utility
27 service assistance and who is:
28 (1) sixty-five years of age or over or whose spouse (if
29 a member of the household) is 65 years of age or over; or
30 (2) a permanently disabled person, during a calendar
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1 year or part thereof in which bills for electric service were
2 due and payable. Permanent disability shall be determined
3 with reference to disability benefits received from an agency
4 of the United States Government, the Commonwealth or a
5 political subdivision of the Commonwealth, or by examination
6 of a physician designated by the department and such status
7 determined using the same standards used by the Federal
8 Social Security Administration.
9 "Department." The Pennsylvania Department of Revenue.
10 "Electricity." Includes electrical energy and electrical
11 power.
12 "Emergency." Is considered to continued until the total
13 price per kilowatt hour of electric energy returns to the level
14 that prevailed in September, 1973.
15 "Generation." Includes manufacture and production.
16 "Household income." All income received by the claimant and
17 his spouse.
18 "Income." All income from whatever source derived, including
19 but not limited to salaries, wages, bonuses, commissions, income
20 from self-employment, alimony, support money, cash public
21 assistance and relief, the gross amount of any pensions or
22 annuities including railroad retirement benefits, all benefits
23 received under the Federal Social Security Act (except Medicare
24 benefits), all benefits received under State unemployment
25 insurance laws and veterans' disability payments, all interest
26 received from the Federal or any State Government, or any
27 instrumentality or political subdivision thereof, realized
28 capital gains, rentals, workmen's compensation and the gross
29 amount of loss of time insurance benefits, life insurance
30 benefits and proceeds (except the first $5,000 of the total of
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1 death benefit payments), and gifts of cash or property (other
2 than transfers by gift between members of a household) in excess
3 of a total value of $300, but shall not include surplus food or
4 other relief in kind supplied by a governmental agency or real
5 property tax assistance.
6 "Sale." Selling or transferring to any person for
7 consumption, use or resale and includes barter and exchange.
8 Section 4. Imposition of tax.
9 (a) For the privilege of generating electricity in this
10 Commonwealth for the purpose of sale, whether the sale takes
11 place in this State or outside the State, there is imposed on
12 any person generating electricity an emergency tax of four
13 tenths of one mill on each net kilowatt hour of electricity
14 generated in Pennsylvania.
15 (b) The tax imposed by this section shall be referred to as
16 the electrical energy tax.
17 Section 5. Measurement and recording of kilowatt hours of
18 electricity.
19 Persons subject to the imposition of the electrical energy
20 tax shall maintain accurate measuring devices and records to
21 measure and record the daily and cumulative monthly and yearly
22 totals of kilowatt hours of electricity generated or distributed
23 in this State.
24 Section 6. Reports; remittances.
25 Every person subject to the imposition of the electrical
26 energy tax shall file a return under oath or affirmation on
27 forms provided by and with the information required by the
28 department and shall pay the tax due annually on or before April
29 15 for the preceding calendar year. The time for filing returns
30 may be extended, estimated settlements may be made by the
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1 Department of Revenue if returns are not filed, and the
2 penalities for failing to file returns and pay the tax shall be
3 as prescribed by the laws defining the powers and duties of the
4 Department of Revenue.
5 Section 7. Relief from other taxes.
6 Unless otherwise specified by statute the imposition of the
7 electrical energy tax shall not act to relieve any person from
8 any other tax levied by the Commonwealth.
9 Section 8. Receipts; disbursements; distribution.
10 All money received by the department shall be deposited in a
11 Electric Utility Service Assistance Fund which is hereby
12 created. All moneys in the fund shall be allocated for the
13 purpose of providing electric utility service assistance
14 pursuant to subsequent provisions as provided in this act.
15 Section 9. Credit; gross receipts tax.
16 (a) If on electricity generated outside the Commonwealth and
17 consumed in the Commonwealth, an electrical energy tax or
18 similar tax on such generation has been levied by another state
19 on political subdivisions thereof, the tax paid may be credited
20 against the gross receipts tax due the Commonwealth of
21 Pennsylvania in an amount no more than the electrical energy tax
22 levied in Pennsylvania.
23 (b) On electricity generated inside this Commonwealth and
24 consumed inside this Commonwealth which is subject to the
25 electrical energy tax, the amount of such tax paid may be
26 credited against the gross receipts tax due the Commonwealth.
27 (c) The credit under subsections (a) and (b) is given to the
28 person liable for the gross receipts tax.
29 Section 10. Electric utility service assistance.
30 (a) The amount of any claim for electric utility service
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1 assistance for electric energy bills due and payable during the
2 six months beginning July 1, 1975 and thereafter for each
3 calendar year shall be determined in accordance with the
4 following schedule:
5 Household Income Refund of Claim
6 $ 0 - $ 2,955 100 %
7 3,000 - 3,499 90
8 3,500 - 3,999 80
9 4,000 - 4,499 70
10 4,500 - 4,999 60
11 5,000 - 5,499 50
12 5,500 - 5,999 40
13 6,000 - 6,499 30
14 6,500 - 6,999 20
15 7,000 - 7,499 10
16 (b) No claim paid under this act shall exceed the sum of
17 $200 in any given year.
18 (c) If the claimant is a surviving spouse who remarries, the
19 department shall apportion the electric utility service
20 assistance for which a claim has been filed, in accordance with
21 the period of time the surviving spouse remained unmarried
22 during the calendar year.
23 (d) If the claimant is a "permanently disabled person" who
24 is no longer disabled, the department shall apportion the
25 electric utility service assistance for which the claimant
26 qualified as a "permanently disabled person" during the calendar
27 year.
28 (e) For a claimant who has received public assistance during
29 the calendar year for which the claim for electric service
30 assistance is made, there shall be subtracted from the claim the
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1 amount allowed in the assistance grant for electricity.
2 Section 11. Filing of claim.
3 A claim for electric service assistance shall be filed with
4 the department on or before June 30 of the year next succeeding
5 the end of the calendar year in which electric service bills
6 were due and payable. No reimbursement on any such claim shall
7 be made from the Electric Utility Service Assistance Fund
8 earlier than September 15 of the same year. Only one claimant
9 from a household each year shall be entitled to electric service
10 assistance. If two or more persons are able to meet the
11 qualifications for a claimant, they may determine who the
12 claimant shall be. If they are unable to agree, the department
13 shall determine to whom assistance is to be paid.
14 Section 12. Proof of claim.
15 (a) Each claim shall include reasonable proof of household
16 income and the receipted bills for electric utility service
17 during the calendar year, or other proof that the amounts billed
18 for electric utility service have been paid.
19 (b) Proof that a claimant is eligible to receive disability
20 benefits under the Federal Social Security Act shall constitute
21 proof of disability under this act. It shall not be necessary
22 that the bills for electric utility service were paid by the
23 claimant provided that the bills have been paid when the claim
24 is filed. The first claim filed shall include proof that the
25 claimant or his spouse was age 65 or over during the calendar
26 year in which the electric service bills were due and payable.
27 Section 13. Incorrect claim.
28 Whenever on audit of any claim, the department finds the
29 claim to have been incorrectly determined, it shall redetermine
30 the correct amount of the claim and notify the claimant of the
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1 reason of the redetermination and the amount of the corrected
2 claim.
3 Section 14. Claim forms; rules and regulations.
4 The department shall prescribe necessary rules and
5 regulations and shall make available suitable forms for filing a
6 claim.
7 Section 15. Fraudulent claim; conveyance to obtain benefits.
8 In any case in which a claim is excessive and was filed with
9 fraudulent intent, the claim shall be disallowed in full and a
10 penalty of 25% of the amount claimed shall be imposed. The
11 penalty and the amount of the disallowed claim, if the claim has
12 been paid, shall bear interest at the rate of 1/2 of 1% per
13 month from the date of the claim until repaid. The claimant and
14 any person who assisted in the preparation or filing of a
15 fraudulent claim shall be guilty of a misdemeanor, and, upon
16 conviction thereof, shall be sentenced to pay a fine not
17 exceeding $1,000 or undergo imprisonment not exceeding one year,
18 or both.
19 Section 16. Petition for redetermination.
20 (a) Any claimant whose claim for electric utility service
21 assistance is either denied, corrected or otherwise adversely
22 affected by the department, may file with the department a
23 petition for redetermination on forms supplied by the department
24 within 90 days after the date of mailing of written notice by
25 the department of such action. Such petition shall set forth the
26 grounds upon which claimant alleges that such departmental
27 action is erroneous or unlawful, in whole or part, and shall be
28 accompanied by an affidavit or affirmation that the facts
29 contained therein are true and correct. An extension of time for
30 filing the petition may be allowed for cause but not to exceed
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1 120 days. The department shall hold such hearings as may be
2 necessary for the purpose of redetermination, and each claimant
3 who has duly filed such petition for redetermination shall be
4 notified by the department of the time when, and the place
5 where, such hearing in his case will be held.
6 (b) It shall be the duty of the department, within six
7 months after receiving a filed petition for redetermination, to
8 dispose of the matters raised by such petition and mail notice
9 of the department's decision to the claimant.
10 Section 17. Review by Board of Finance and Revenue.
11 Within 90 days after the date of official receipt by the
12 claimant of notice mailed by the department of its decision on
13 any petition for redetermination filed with it, the claimant who
14 is adversely affected by such decision may by petition request
15 the Board of Finance and Revenue to review such action. The
16 failure of the department to notify officially the claimant of a
17 decision within the six-months' period provided for by section
18 10 shall act as a denial of such petition, and a petition for
19 review may be filed with the Board of Finance and Revenue within
20 120 days after written notice is officially received by the
21 claimant that the department has failed to dispose of the
22 petition within the six-month period prescribed by section 16.
23 Every petition for redetermination filed hereunder shall state
24 the reasons upon which the claimant relies, or shall incorporate
25 by reference the petition for redetermination in which such
26 reasons shall have been stated. The petition shall be supported
27 by affidavit that the facts set forth therein are correct and
28 true. The Board of Finance and Revenue shall act in disposition
29 of such petitions filed with it within six months after they
30 have been received, and in the event of failure of said board to
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1 dispose of any such petition within six months, the action taken
2 by the department upon the petition for redetermination shall be
3 deemed sustained. The Board of Finance and Revenue may sustain
4 the action taken by the department on the petition for
5 redetermination or it may take such other action as it shall
6 deem is necessary and consistent with provisions of this act.
7 Notice of the action of the Board of Finance and Revenue shall
8 be given by mail to the department and to the claimant.
9 Section 18. Appeal to the Commonwealth Court.
10 Any claimant, aggrieved by the decision of the Board of
11 Finance and Revenue may, within 30 days, after receipt by
12 claimant of official board notice appeal to the Commonwealth
13 Court from the decision of the Board of Finance and Revenue, in
14 the manner now or hereafter provided by law for appeals from
15 decisions of said board in tax cases.
16 Section 19. Legislative intent.
17 It is the intent of the Legislature that this entire act be
18 considered not severable, and should any part hereof be declared
19 unconstitutional, the entire act shall be declared void.
20 Section 20. Effective date.
21 This act shall take effect immediately and shall be
22 retroactive to July 1, 1975.
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