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statutes is repealed and the following is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the general statutes is repealed and the following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