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

S2544

2026 -- S 2544
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LC004319
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX

Introduced By:
Senators Patalano, Dimitri, Thompson, Quezada, Raptakis, Famiglietti,
Appollonio, E Morgan, Tikoian, and Burke

Date Introduced:
February 13, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 44-13-4 of the General Laws in Chapter 44-13 entitled "Public
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Service Corporation Tax" is hereby amended to read as follows:
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44-13-4. Rate of taxation.
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The tax imposed will be at the following rates:
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(1) In the case of every corporation whose principal business is a steamboat or ferryboat
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business as a common carrier, every common carrier steam or electric railroad corporation, every
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street railway corporation, every common carrier dining, sleeping, chair, or parlor car corporation,
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every corporation whose principal business is selling and distributing water to the public, and every
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toll bridge corporation, one and one-fourth percent (1.25%) of its gross earnings;
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(2) In the case of every corporation whose principal business is manufacturing, selling,
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distributing and/or transmitting currents of electricity to be used for light, heat, or motive power,
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four percent (4%) of its gross earnings, but deductions shall be made of gross earnings from the
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transmission or sale of electricity to other public utility corporations, non-regulated power
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producers, or municipal utilities for resale, whether within or outside of this state; provided, that
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the tax measured by the portion of the utility’s gross earnings as is derived from the manufacture
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and sale of illuminating and heating gas and its by-products and the merchandising of gas
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appliances shall be computed at the rate of three percent (3%);
Notwithstanding the above, on and
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after January 1, 2027, the rate of tax set forth in subsection (2) of this section shall be suspended
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until January 1, 2036;

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(3) In the case of every express corporation carrying on its business on steamboats, steam
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or electric railroads, or street railways and of every public service corporation whose principal
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business is that of a telegraph corporation, four percent (4%) of its gross earnings;
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(4) In the case of every telecommunications corporation providing telecommunications
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service, ten percent (10%) of its gross earnings; provided, that the rate shall be nine percent (9%)
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effective July 1, 1985, eight percent (8%) effective July 1, 1986, seven percent (7%) effective July
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1, 1987, six percent (6%) effective July 1, 1988, and five percent (5%) effective July 1, 1997. For
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purposes of this chapter, “telecommunications service” means the transmission of any interactive
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two-way electromagnetic communications including voice, image, data, and other information, by
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means of wire, cable, including fiber optical cable, microwave, and radio wave, or any
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combinations of these media. This definition does not include value added non-voice services in
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which computer processing applications are used to act on the form, content, code, and protocol of
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the information to be transmitted;
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(5) In the case of every public service cable corporation, eight percent (8%) of its gross
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earnings;
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(6) In the case of every corporation whose principal business is manufacturing, selling
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and/or distributing to the public illuminating or heating gas, three percent (3%) of its gross earnings.
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SECTION 2. This act shall take effect on January 1, 2027.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX
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This act would suspend the gross earnings tax on electric and gas companies until January
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1, 2036.
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This act would take effect on January 1, 2027.
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LC004319
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LC004319 - Page 3 of 3