HB 1325 -- Utility Taxation

Co-Sponsors:  Mays (50), Burton

This bill makes changes to the provisions enacted in Senate Bill
627 (1998), which required sellers of electricity and gas to be
certified by the Public Service Commission and to file
agreements which the sellers entered into for the payment of all
business license taxes or franchise fees owed.  The bill
clarifies that a retail user will not be considered a seller.  A
provision is added requiring electrical and gas corporations to
file tariffs, and electric cooperatives to implement service
conditions, by October 1, 2000, to enforce the agreement
structure.

The bill also extends the same framework to sales and use tax,
requiring sellers of electricity and gas to file agreements with
the Public Service Commission to collect and remit all local
sales and use taxes on energy services.  Distributors and
political subdivisions are prohibited from providing 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 the agreement and of any right to a refund of
amounts paid.  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 finding of public convenience and
necessity by the Public Service Commission.

The bill has an emergency clause.