PRIOR PRINTER'S NO. 193 PRINTER'S NO. 3057
No. 192 Session of 1981
INTRODUCED BY WILSON, JANUARY 26, 1981
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
MARCH 23, 1982
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for an exemption from AND A LIMITATION <--
11 ON the utilities gross receipts tax AND ELIMINATING UTILITIES <--
12 GROSS RECEIPTS TAX IN CERTAIN INSTANCES.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Subsection (a) of section 1101, act of March 4,
16 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
17 amended December 11, 1979 (P.L.499, No.107), is amended AND A <--
18 SUBSECTION IS ADDED to read:
19 Section 1101. Imposition of Tax.--(a) General Rule.--Every
20 railroad company, pipeline company, conduit company, steamboat
21 company, canal company, slack water navigation company,
22 transportation company, except a nonscheduled air carrier of
1 freight or passengers, and every other company, association,
2 joint-stock association, or limited partnership, now or
3 hereafter incorporated or organized by or under any law of this
4 Commonwealth, or now or hereafter organized or incorporated by
5 any other state or by the United States or any foreign
6 government, and doing business in this Commonwealth, and every
7 copartnership, person or persons owning, operating or leasing to
8 or from another corporation, company, association, joint-stock
9 association, limited partnership, copartnership, person or
10 persons, any railroad, pipeline, conduit, steamboat, canal,
11 slack water navigation, or other device for the transportation
12 of freight, passengers, baggage, or oil, except taxicabs, motor
13 buses and motor omnibuses, and every limited partnership,
14 association, joint-stock association, corporation or company
15 engaged in, or hereafter engaged in, the transportation of
16 freight or oil within this State, and every telephone company,
17 telegraph company, express company, gas company, palace car
18 company and sleeping car company, now or hereafter incorporated
19 or organized by or under any law of this Commonwealth, or now or
20 hereafter organized or incorporated by any other state or by the
21 United States or any foreign government and doing business in
22 this Commonwealth, and every limited partnership, association,
23 joint-stock association, copartnership, person or persons,
24 engaged in telephone, telegraph, express, gas, palace car or
25 sleeping car business in this Commonwealth, shall pay to the
26 State Treasurer, through the Department of Revenue, a tax of
27 forty-five mills upon each dollar of the gross receipts of the
28 corporation, company or association, limited partnership, joint-
29 stock association, copartnership, person or persons, received
30 from passengers, baggage, and freight transported wholly within
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1 this State, from telegraph or telephone messages transmitted
2 wholly within this State, from express, palace car or sleeping
3 car business done wholly within this State, or from the sales of
4 gas, except gross receipts derived from sales to any
5 municipality owned or operated public utility and except gross
6 receipts derived from the sales for resale, to persons,
7 partnerships, associations, corporations or political
8 subdivisions subject to the tax imposed by this act upon gross
9 receipts derived from such resale and from the transportation of
10 oil done wholly within this State. The gross receipts of gas
11 companies shall include the gross receipts from the sale of
12 artificial and natural gas, but shall not include gross receipts
13 from the sale of liquefied petroleum gas.
14 * * *
15 (G) ANNUAL ADJUSTMENT.--THE RATE OF THE TAX IMPOSED BY THIS <--
16 SECTION SHALL BE ADJUSTED ANNUALLY BY THE PENNSYLVANIA PUBLIC
17 UTILITY COMMISSION TO PRODUCE THE REVENUE EQUAL TO THE AMOUNT OF
18 REVENUE DUE AND PAYABLE DURING THE 1981-1982 FISCAL YEAR OF THE
19 COMMONWEALTH.
20 Section 2. This act shall take effect January 1, 1981. <--
21 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ: <--
22 SECTION 1101.3. CERTAIN PURCHASED ENERGY COSTS NOT TAXED.--
23 NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO TAX
24 SHALL BE IMPOSED PURSUANT TO THIS ARTICLE ON ANY PUBLIC
25 UTILITY'S REVENUES RESULTING FROM HIGHER PURCHASED ENERGY COSTS
26 INCURRED AS A DIRECT CONSEQUENCE OF AN UNSCHEDULED OUTAGE
27 LASTING TWO MONTHS OR LONGER AT A NUCLEAR GENERATING FACILITY
28 RESULTING FROM A MAJOR ACCIDENT OR NATURAL DISASTER AS
29 DETERMINED BY THE PUBLIC UTILITY COMMISSION. TO DETERMINE
30 PURCHASED ENERGY COSTS THE PUBLIC UTILITY COMMISSION SHALL MAKE
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1 A DETERMINATION OF THE ESTIMATED RELIABILITY OF THE PLANT
2 OPERATING UNDER NORMAL CONDITIONS PRIOR TO SUCH UNSCHEDULED
3 OUTAGE. ANY UTILITY WHERE THE TAX LIABILITY IS REDUCED PURSUANT
4 TO THIS SECTION SHALL APPROPRIATELY ADJUST TO THE RATES CHARGED
5 TO THE RATEPAYERS PURSUANT TO PROCEDURES ESTABLISHED BY THE
6 PUBLIC UTILITY COMMISSION TO FULLY REFLECT THE TAX REDUCTION.
7 ANY EXEMPTION GRANTED UNDER THIS SECTION SHALL BE CALCULATED
8 BEGINNING WITH THE ORIGINAL DATE OF THE UNSCHEDULED OUTAGE AND
9 SHALL EXTEND UNTIL REGULAR SERVICE AT THE GENERATING FACILITY IS
10 RESUMED BUT NOT FOR MORE THAN TWENTY-FOUR MONTHS WITHOUT ANOTHER
11 REVIEW BY THE COMMISSION.
12 SECTION 3. SECTION 1101.3 SHALL TAKE EFFECT IMMEDIATELY AND
13 SHALL BE RETROACTIVE TO JANUARY 1, 1979 AND THE REMAINDER OF
14 THIS AMENDATORY ACT SHALL TAKE EFFECT JANUARY 1, 1983.
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