TAXATION -- PUBLIC SERVICE CORPORATION TAX, the official text

H7703 2026 -- H 7703 ======== LC005077 ======== STATE OF RHODE ISLAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2026 ____________ A N A C T RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX Introduced By: Representatives Lima, Costantino, Fellela, Serpa, J. Brien, Casey, Noret, Hopkins, Shanley, and O Brien Date Introduced: February 11, 2026 Referred To: House Finance It is enacted by the General Assembly as follows: 1 SECTION 1. Section 44-13-4 of the General Laws in Chapter 44-13 entitled Public 2 Service Corporation Tax is hereby amended to read as follows: 3 44-13-4. Rate of taxation. 4 The tax imposed will be at the following rates: 5 (1) In the case of every corporation whose principal business is a steamboat or ferryboat 6 business as a common carrier, every common carrier steam or electric railroad corporation, every 7 street railway corporation, every common carrier dining, sleeping, chair, or parlor car corporation, 8 every corporation whose principal business is selling and distributing water to the public, and every 9 toll bridge corporation, one and one-fourth percent (1.25%) of its gross earnings; 10 (2) In the case of every corporation whose principal business is manufacturing, selling, 11 distributing and/or transmitting currents of electricity to be used for light, heat, or motive power, 12 four percent (4%) of its gross earnings, but deductions shall be made of gross earnings from the 13 transmission or sale of electricity to other public utility corporations, non-regulated power 14 producers, or municipal utilities for resale, whether within or outside of this state; provided, that 15 the tax measured by the portion of the utility’s gross earnings as is derived from the manufacture 16 and sale of illuminating and heating gas and its by-products and the merchandising of gas 17 appliances shall be computed at the rate of three percent (3%); Notwithstanding the above, on and 18 after January 1, 2027, the rate of tax set forth in subsection (2) of this section shall be suspended 19 until January 1, 2036; 1 (3) In the case of every express corporation carrying on its business on steamboats, steam 2 or electric railroads, or street railways and of every public service corporation whose principal 3 business is that of a telegraph corporation, four percent (4%) of its gross earnings; 4 (4) In the case of every telecommunications corporation providing telecommunications 5 service, ten percent (10%) of its gross earnings; provided, that the rate shall be nine percent (9%) 6 effective July 1, 1985, eight percent (8%) effective July 1, 1986, seven percent (7%) effective July 7 1, 1987, six percent (6%) effective July 1, 1988, and five percent (5%) effective July 1, 1997. For 8 purposes of this chapter, “telecommunications service” means the transmission of any interactive 9 two-way electromagnetic communications including voice, image, data, and other information, by 10 means of wire, cable, including fiber optical cable, microwave, and radio wave, or any 11 combinations of these media. This definition does not include value added non-voice services in 12 which computer processing applications are used to act on the form, content, code, and protocol of 13 the information to be transmitted; 14 (5) In the case of every public service cable corporation, eight percent (8%) of its gross 15 earnings; 16 (6) In the case of every corporation whose principal business is manufacturing, selling 17 and/or distributing to the public illuminating or heating gas, three percent (3%) of its gross earnings. 18 SECTION 2. This act shall take effect on January 1, 2027. ======== LC005077 ======== LC005077 - Page 2 of 3 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX *** 1 This act would suspend the gross earnings tax on electric and gas companies until January 2 1, 2036. 3 This act would take effect on January 1, 2027. ======== LC005077 ======== LC005077 - Page 3 of 3