WILLIAM DONALD SCHAEFER, Governor                         Ch. 162

CHAPTER 162
(Senate Bill 265)

AN ACT concerning

Public Service Company Franchise Tax - Sale of Service or Product Used in the

Generation of Electricity

FOR the purpose of altering the definition of "gross receipts" under the public service
company franchise tax to exclude gross charges from certain sales of a service or
product natural gas or natural gas delivery service that is used in the generation of
electricity; and providing for the application of this Act.

BY repealing and reenacting, with amendments,
Article - Tax - General
Section 8-401(b)(3)
Annotated Code of Maryland
(1988 Volume and 1993 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

8-401.

(b) (3) "Gross receipts" does not include:

(i) any revenue that a public service company derives from an activity
other than an electric, gas, oil pipeline, telegraph, or telephone business;

(ii) net uncollectible revenue; or

(iii) gross charges from the sale by a public service company TO
ANOTHER PUBLIC SERVICE COMPANY SUBJECT TO THE TAX IMPOSED BY THIS
SUBTITLE of:

1.       a service or product for resale [to any other public service
company subject to the tax imposed by this subtitle]; OR

2. A SERVICE OR PRODUCT THAT IS USED BY THE OTHER
PUBLIC SERVICE COMPANY IN THE GENERATION OF ELECTRICITY.

2.       NATURAL GAS OR NATURAL GAS DELIVERY SERVICE
THAT IS USED BY THE OTHER PUBLIC SERVICE COMPANY IN THE GENERATION OF
ELECTRICITY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1994 and shall be applicable to all tax years beginning after December 31, 1993.

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