|BILL AS INTRODUCED||2007-2008|
Introduced by Representatives Klein of East Montpelier, Ancel of Calais, Botzow of Pownal, Chen of Mendon, Cheney of Norwich, Copeland-Hanzas of Bradford, Courcelle of Rutland City, Davis of Washington, Deen of Westminster, Donovan of Burlington, Edwards of Brattleboro, Emmons of Springfield, Fisher of Lincoln, French of Randolph, Gilbert of Fairfax, Haas of Rochester, Hunt of Essex, Hutchinson of Randolph, Kitzmiller of Montpelier, Larson of Burlington, Leriche of Hardwick, Lorber of Burlington, Maier of Middlebury, Marek of Newfane, Martin of Springfield, McCullough of Williston, Minter of Waterbury, Mitchell of Barnard, Monti of Barre City, Mook of Bennington, Mrowicki of Putney, Nuovo of Middlebury, Pearson of Burlington, Pellett of Chester, Peltz of Woodbury, Potter of Clarendon, Sharpe of Bristol, Weston of Burlington and Zuckerman of Burlington
Subject: Taxation; electric generating facility kilowatt hour tax
Statement of purpose: This bill proposes to replace the current megawatt hour tax on certain electric generating facilities with a tax based on kilowatt hours produced.
AN ACT RELATING TO ELECTRIC GENERATING FACILITY KILOWATT HOUR TAX
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 8661 is amended to read:
TAX LEVY KILOWATT HOUR TAX
There is hereby assessed each year upon electric generating plants constructed
in the state subsequent to July 1, 1965, and having a name plate generating
capacity of 200,000 kilowatts, or more, a state tax
in accordance with the
following table: If
megawatt hour production is: tax
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, “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 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. imposed at a rate per kWh of electrical energy produced
by the facility as determined by the public service department for the average
of the past three calendar years. The rate of the tax shall be:
(1) $0.00225 per kWh in fiscal year 2010;
(2) $0.0025 in fiscal year 2011; and
(3) $0.003 in fiscal year 2012 and thereafter.
(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) 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.
(d) The tax imposed by this section shall be collected quarterly and shall be due on the last day of the month following the end of the quarter. It shall be paid to the commissioner of taxes by the person or corporation then owning or operating such electric generating plant.
(e) Annually, of the revenues received:
(1) 42 percent shall be deposited in the education fund of the state established in section 4025 of Title 16 to be expended for the purposes of that fund.
(2) 58 percent shall be deposited in the general fund of the state.
Sec. 2. REPEAL
32 V.S.A. § 5402a (electric generating plant education property tax) is repealed.
Sec. 3. REPORT
By January 15, 2009, the commissioner of taxes shall present recommendations to the senate committee on finance and the house committee on ways and means with regard to transitioning from the existing tax established in 32 V.S.A. § 8661 to the tax as established under this act.
Sec. 4. EFFECTIVE DATES
This act shall take effect upon passage, except Secs. 1 and 2 of this act which shall take effect July 1, 2009.
The Vermont General Assembly
115 State Street