AN ACT RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX (Suspends the gross earnings tax on electric and gas companies until January 1, 2036.)

H7703

2026 -- H 7703
========
LC005077
========

STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX

Introduced By:
Representatives Lima, Costantino, Fellela, Serpa, J. Brien, Casey, Noret,
Hopkins, Shanley, and O'Brien

Date Introduced:
February 11, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
1
SECTION 1. Section 44-13-4 of the General Laws in Chapter 44-13 entitled "Public
2
Service Corporation Tax" is hereby amended to read as follows:
3

44-13-4. Rate of taxation.
4
The tax imposed will be at the following rates:
5
(1) In the case of every corporation whose principal business is a steamboat or ferryboat
6
business as a common carrier, every common carrier steam or electric railroad corporation, every
7
street railway corporation, every common carrier dining, sleeping, chair, or parlor car corporation,
8
every corporation whose principal business is selling and distributing water to the public, and every
9
toll bridge corporation, one and one-fourth percent (1.25%) of its gross earnings;
10
(2) In the case of every corporation whose principal business is manufacturing, selling,
11
distributing and/or transmitting currents of electricity to be used for light, heat, or motive power,
12
four percent (4%) of its gross earnings, but deductions shall be made of gross earnings from the
13
transmission or sale of electricity to other public utility corporations, non-regulated power
14
producers, or municipal utilities for resale, whether within or outside of this state; provided, that
15
the tax measured by the portion of the utility’s gross earnings as is derived from the manufacture
16
and sale of illuminating and heating gas and its by-products and the merchandising of gas
17
appliances shall be computed at the rate of three percent (3%);
Notwithstanding the above, on and
18
after January 1, 2027, the rate of tax set forth in subsection (2) of this section shall be suspended
19
until January 1, 2036;

1
(3) In the case of every express corporation carrying on its business on steamboats, steam
2
or electric railroads, or street railways and of every public service corporation whose principal
3
business is that of a telegraph corporation, four percent (4%) of its gross earnings;
4
(4) In the case of every telecommunications corporation providing telecommunications
5
service, ten percent (10%) of its gross earnings; provided, that the rate shall be nine percent (9%)
6
effective July 1, 1985, eight percent (8%) effective July 1, 1986, seven percent (7%) effective July
7
1, 1987, six percent (6%) effective July 1, 1988, and five percent (5%) effective July 1, 1997. For
8
purposes of this chapter, “telecommunications service” means the transmission of any interactive
9
two-way electromagnetic communications including voice, image, data, and other information, by
10
means of wire, cable, including fiber optical cable, microwave, and radio wave, or any
11
combinations of these media. This definition does not include value added non-voice services in
12
which computer processing applications are used to act on the form, content, code, and protocol of
13
the information to be transmitted;
14
(5) In the case of every public service cable corporation, eight percent (8%) of its gross
15
earnings;
16
(6) In the case of every corporation whose principal business is manufacturing, selling
17
and/or distributing to the public illuminating or heating gas, three percent (3%) of its gross earnings.
18
SECTION 2. This act shall take effect on January 1, 2027.
========
LC005077
========

LC005077 - Page 2 of 3
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX
***
1
This act would suspend the gross earnings tax on electric and gas companies until January
2
1, 2036.
3
This act would take effect on January 1, 2027.
========
LC005077
========

LC005077 - Page 3 of 3