NO. 50.  AN ACT RELATING TO TAXATION OF ELECTRIC GENERATING PLANTS.

(H.473)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 8661 is amended to read:

§ 8661.  TAX LEVY

(a)  There is hereby assessed each year upon electric generating plants constructed in the state by any electric utility subsequent to July 1, 1965, and having a name plate generating capacity of 200,000 kilowatts, or more, a state tax of 2.75 percent of the appraised value thereof, obtained and established as hereinafter provided. in accordance with the following table:

If megawatt hour production is:                     tax is:

Less than 2,300,000 megawatt hours           $2.0 million

2,300,000 to 3,800,000 megawatt hours      $2.0 million plus $0.40 per

                                                                   megawatt hour over 2,300,000

3,800,001 to 4,200,000 megawatt hours      $2.6 million

Over 4,200,000 megawatt hours                  $2.6 million plus $0.40 per

                                                                   megawatt hour over 4,200,000

For purposes of this section, “electric generating plant” shall not include real property on land which is not contiguous with any parcel upon which the generating structure is located “megawatt hour production” means the average of net production for sale in the three most recent preceding calendar years.  The tax imposed by this section shall be paid to the commissioner in equal quarterly installments by the person or corporation then owning or operating such electric generating plant on or before the 25th day of March, June, September, and December by the person or corporation then owning or operating such electric generating plant.

(b)  The commissioner shall appraise such electric generating plants acquired, constructed or used by an electric public utility and located within this state at its original cost less depreciation as required to be reported to the public service board for rate regulation purposes as of December 31, 2001.

If an entity subject to this tax generates no electricity during the tax year due to termination or expiration of a necessary license, or due to permanent cessation of operations, no tax shall be due for that year.

(c)  A person or corporation failing to make returns or pay the tax imposed by this section within the time required shall be subject to and governed by the provisions of sections 3202, 3203, 5868, and 5873 of this title.

Sec. 2.  32 V.S.A. § 5402a is amended to read:

§ 5402a.  ELECTRIC GENERATING PLANT EDUCATION PROPERTY

                TAX

     (a)  There is assessed for the fiscal year July through June upon any operating electric generating plant subject to the tax under chapter 213 of this title, an education property tax at a rate of two percent of the most recent appraised value of the plant as established under section 8661 of this title.  in accordance with the following table:

If megawatt hour production is:                     tax is:

Less than 2,300,000 megawatt hours           $1.465 million

2,300,000 to 3,800,000 megawatt hours      $1.465 million plus $0.29 per                                                                megawatt hour over 2,300,000

3,800,001 to 4,200,000 megawatt hours      $1.9 million

Over 4,200,000 megawatt hours                  $1.9 million plus $0.29 per

                                                                   megawatt hour over 4,200,000

For purposes of this section, “megawatt hour production” means the average of net production for sale in the three most recent preceding calendar years.

     (b)  If an entity subject to this tax generates no electricity during the tax year due to termination or expiration of a necessary license or due to permanent cessation of operations, no tax shall be due for that year.

     (c)  The tax imposed by this section shall be paid to the commissioner of taxes by the person or corporation then owning or operating such electric generating plant, one-half on December 1 and one-half on June 1 each year, for deposit into the education fund.  A person or entity failing to make returns or pay the tax imposed by this section within the time required shall be subject to and governed by the provisions of sections 3202, 3203, 5868, and 5873 of this title.

Sec. 3.  EFFECTIVE DATES

     Sec. 1 of this act (tax on electric generating plants) shall apply to taxes due in calendar years 2004 and after, and Sec. 2 of this act (education property tax on electric generating plants) shall apply to taxes due for fiscal years 2005 and after.

Approved:  June 2, 2003