SB 0612 Requires sellers of energy services to certify with the Public Service Commission to collect and remit taxes
LR Number:2863L.01I Fiscal Note:2863-01
Committee:Commerce and Environment
Last Action:02/01/00 - Hearing Conducted S Commerce & Environment Journal page:
Effective Date:Emergency Clause
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Current Bill Summary

SB 612 - This act makes changes to the provisions enacted in Senate Bill 627 from the 1998 legislative session, which required sellers of electricity and gas to be certified by the Public Service Commission and to file agreements which the sellers entered into, with either the distributor or political subdivision, for the payment of all business license taxes or franchise fees owed. This act clarifies that a retail user will not be considered a seller. An enforcement provision is added which requires electrical and gas corporations to file tariffs, and electric cooperatives to implement service conditions, by October 1, 2000, to enforce the agreement structure. The act requires political subdivisions which impose business license taxes, have franchise fee agreements or payments-in-lieu-of-tax (PILOTs) to submit the corresponding consumption tax to the voters for approval no later than April 15, 2002.

The act also extends the same framework to sales and use tax, requiring sellers of electricity and gas to file, with the Public Service Commission, agreements entered into with either the distributor or political subdivision to collect and remit all sales and use taxes. Distributors and political subdivisions are prohibited from selling energy services to any person unless the seller has been certified by the Public Service Commission and has filed its agreements. Sellers are required to waive all rights to challenge the validity of any agreement and of any right to a refund. A declaratory judgment action is authorized. Legal action challenging the validity of any agreement suspends that agreement until a final court judgment is made; if a court judgment invalidates the agreement structure, energy services may only be provided upon a showing of public convenience and necessity by the Public Service Commission.

The act has an emergency clause.