MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Public Utilities; Ways and Means

By: Representative Ellis

AN ACT TO AMEND SECTION 77-3-87, MISSISSIPPI CODE OF 1972, TO CAP UTILITY REGULATION TAXES AT THE LEGISLATIVE APPROPRIATION FOR PUBLIC UTILITY REGULATORY PURPOSES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 77-3-87, Mississippi Code of 1972, is amended as follows:

77-3-87. All reasonable and necessary expenses of the administration of the duties imposed on the Public Utilities Staff and on the commission by Title 77, Mississippi Code of 1972, excluding the reasonable and necessary expenses of the administration and enforcement by the commission of the laws of this state pursuant to Chapters 7 and 9 of Title 77, Mississippi Code of 1972, shall be provided as follows: There is * * * levied a tax upon: (a) all utilities, the rates of which are subject to regulation by the provisions of this chapter; and upon (b) all utilities not subject to such rate regulation which furnish to the ultimate consumer utility services of the type described by subparagraph (i) of paragraph (d) of Section 77-3-3 and otherwise subject to regulation by the provisions of this chapter, such levy to be effective on the first day of each year and to be calculated as follows: The rate of the tax shall be one hundred sixty-four thousandths of one percent (164/1000 of 1%) per year, of the gross revenues from the intrastate operations of the utilities taxed under this section. The rate of the tax for electric power associations and rural electrification authorities shall be ninety thousandths of one percent (90/1000 of 1%) per year of the gross revenues from the intrastate operations of electric power associations and rural electrification authorities taxed under this section. The sum of all taxes levied by this section shall not exceed an amount equal to the total legislative appropriation of monies from the Public Utilities Staff Regulation Fund and the Public Service Commission Regulation Fund for the ensuing fiscal year. The commission and the Executive Director of the Public Utilities Staff shall certify to the State Tax Commission the amount of legislative appropriations of monies for the regulation of utilities. The State Tax Commission shall adjust the tax rates on a pro rata basis to generate the necessary revenues as established by such legislative appropriations.

Each utility which is subject to the tax levied by this section shall file a statement of its gross revenue by April 1 of each year showing the gross revenue for the preceding year's operation. These statements of gross revenue shall be filed with the State Tax Commission on forms prescribed and furnished by the State Tax Commission. The State Tax Commission shall file a copy of these statements of gross revenue with the Public Utilities Staff and the commission. The State Tax Commission shall calculate the amount of tax to be paid by each of the utilities and shall submit a statement thereof to the respective utilities, and the amount shown due in the statements to the utilities shall be paid by them within thirty (30) days thereafter to the State Tax Commission. The State Tax Commission shall furnish the Public Utilities Staff and the commission with an itemized list showing gross and net revenues, assessments, tax collections and other related information for the respective utilities. * * *

The State Tax Commission shall pay these funds into the State Treasury on the same day collected to the credit of the "Public Utilities Staff Regulation Fund" and to the "Public Service Commission Regulation Fund" in the proportion that the legislative appropriation of monies from each fund for the regulation of utilities for the ensuing fiscal year bears to the total legislative appropriation of monies from both funds for the regulation of utilities for the ensuing fiscal year. * * *

All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of such chapter, and all other duties and requirements imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this chapter, and the Tax Commissioner shall exercise all the power and authority and perform all the duties with respect to taxpayers under this chapter as are provided in the Mississippi Sales Tax Law except where there is a conflict, then the provisions of this chapter shall control. The term "gross revenue" as used in this section is the total amount of all revenue derived by each of the utilities from its intrastate operations, which are subject to rate regulation under the provisions of this chapter or which constitute utility services of the type described by subparagraph (i) of paragraph (d) of Section 77-3-3 and which are regulated by this chapter and furnished to ultimate consumers. The State Tax Commission is hereby authorized to use all tax returns of any utilities available to it and to make audits as may be deemed necessary of all records of utilities in order to correctly determine the amount of such gross revenue.

All proceeds of the above-mentioned tax are hereby allocated to the Public Utilities Staff and to the commission in the manner provided in this section for the purpose of this chapter.

Each utility subject to the provisions of this section shall be allowed to recover, through the use of a rate adjustment clause or rider, the excess amount that the utility paid for the reasonable and necessary expenses of the commission and the Public Utilities Staff.

SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under Chapter 3, Title 77, Mississippi Code of 1972, before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of Chapter 3, Title 77, Mississippi Code of 1972, are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 3. This act shall take effect and be in force from and after its passage.