Substitute Senate Bill No. 495
          Substitute Senate Bill No. 495

              PUBLIC ACT NO. 98-218


AN ACT CONCERNING TAXES RELATING TO GAS COMPANIES.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1. Section  16-258a  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Each corporation, company,  association, joint
stock  association,  partnership   or  person,  or
lessee thereof, which  sells  natural  gas [in the
state] to an  end user IN THE STATE and is not (1)
a gas company,  as  defined in section 16-1, (2) a
municipal gas utility  established  under  chapter
101  or  any  other  gas  utility  owned,  leased,
maintained, operated, managed,  or  controlled  by
any unit of  local  government  under  any general
statute or any public or special act, or (3) a gas
pipeline or gas  transmission  company  subject to
the provisions of chapter 208, shall register with
the Department of  Public Utility Control prior to
making any such  sale by filing a form supplied by
said department.
    Sec. 2. Subsection  (b)  of  section 12-265 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) (1) Each  company  and  municipal  utility
included in section  12-264  shall be taxed at the
rate of five  per  cent  upon  the amount of gross
earnings in each  taxable quarter from operations,
except as set  forth  in  subsection (c) or (d) of
this section and  except  that  each  company  and
municipal   utility  manufacturing,   selling   or
distributing gas or  electricity  to  be  used for
light, heat or power shall be taxed at the rate of
four per cent upon the amount of gross earnings in
each  taxable  quarter  allocable  to  residential
service, but deduction  shall  be  made  of  gross
earnings (A) from  all  sales for resale of water,
steam,  gas  and  electricity  to  public  service
corporations and municipal  utilities,  whether or
not such purchasers are Connecticut public service
corporations or Connecticut  municipal  utilities,
and whether or  not  they  are  subject to the tax
imposed by this  chapter, (B) from any federal BTU
energy  tax  included  in  adjustment  clause  and
base-rate revenues, (C)  from  sales of appliances
using water, steam,  gas  or  electricity  by each
such  company  of   the  net  invoice  price  plus
transportation costs of  such  appliances,  (D) of
electric and gas  companies, as defined in section
16-1,  from  energy  conservation  loan  programs,
[and] (E) from  all  sales  for  resale  of gas to
companies registered pursuant  to section 16-258a,
AS AMENDED BY  THIS ACT, AND (F) FROM ALL SALES OF
NATURAL GAS TO  A  USER  OR ENTITY LOCATED OUTSIDE
THE STATE.
    (2) Gross earnings  for  any  taxable quarter,
for the purposes of assessment and taxation, shall
be as follows:  (A)  In  the  case of a company or
municipal   utility  carrying   on   business   or
operating entirely within  this  state, the amount
of gross earnings from operations; (B) in the case
of a company  or  municipal  utility  carrying  on
business or operations  a part of which is outside
of this state,  (i)  such portion of the amount of
gross earnings from  operations  determined  under
the provisions of section 12-264 as is represented
by the ratio  of  the  number of miles of water or
steam pipes, gas  mains or electric wires operated
by such company  or  municipal utility within this
state on the  first day and on the last day of the
calendar year immediately  preceding  to the total
number of miles of water or steam pipes, gas mains
or electric wires  operated  by  such  company  or
municipal utility on  said  dates;  or (ii) in the
case of a company required to register pursuant to
section 16-258a, AS  AMENDED  BY  THIS  ACT,  such
portion  of the  amount  of  gross  earnings  from
operations  determined  under  the  provisions  of
section 12-264 as  is  represented by the ratio of
the sales in  this  state to end users during such
quarter to the total sales everywhere to end users
during such quarter.
    Sec. 3. This  act  shall  take  effect July 1,
1998.

Approved June 8, 1998