§ 11-4-101. TAX ON CONSUMPTION OF ELECTRICITY.

(a)

Definitions.

(1)

In this section the following words have the meanings indicated.

(2)

"Electric company" has the meaning stated in § 1-101 of the Public Utility Companies Article of the Annotated Code of Maryland.

(3)

"Electricity supplier" has the meaning stated in § 1-101 of the Public Utility Companies Article of the Annotated Code of Maryland.

(4)

"Manufacturer" means a person that is considered to be engaged in manufacturing as defined in the North American Industry Classification System, United States, 1997, as amended.

(5)

(i)

"Retail electric customer" has the meaning stated in § 1-101 of the Public Utility Companies Article of the Annotated Code of Maryland.

(ii)

"Retail electric customer" does not include:

1.

A unit, agency, department or political subdivision of the United States, the State of Maryland, or Baltimore County;

2.

A hospital, religious, charitable, scientific, literary, educational, fraternal, or benevolent institution, if no part of its net income inures to private shareholders or individuals;

3.

A civic improvement association, service club, volunteer fire company, or youth organization, if no part of its net income inures to private shareholders or individuals;

4.

A residential retail electric customer to whom sales of electricity are made under the residential schedule applicable to Baltimore County on file with the State Public Service Commission, designated electricity schedule R; or

5.

A retail electric customer to whom sales of electricity are made under the private area lighting electric schedule on file with the State Public Service Commission, designated electricity schedule P.L.

(6)

(i)

"Revenue" means the total amount billed for the sale, transmission, delivery, or distribution of electricity to a retail electric customer.

(ii)

"Revenue" includes:

1.

The amount billed for electricity cost adjustments, delivery or system charges, service charges, electricity supply services, billing services, metering services, or purchasing, brokering, arranging, or marketing electricity or electricity supply services for sale to a retail electric customer; and

2.

Except for the environmental and universal service surcharges imposed under § 7-203 of the Public Utility Companies Article of the Annotated Code of Maryland, rates, charges, surcharges, and tariffs imposed by the Public Service Commission under Titles 4 and 7 of the Public Utility Companies Article of the Annotated Code of Maryland in connection with the sale, transmission, delivery, or distribution of electricity to a retail electric customer.

(iii)

"Revenue" does not include finance charges, late payment charges, other governmentally imposed taxes, charges or fees, the tax imposed under this section, or charges associated with the initial hook-up, or re-connection to the seller's system.

(7)

(i)

"Seller" means a person that sells, distributes, transmits, or delivers electricity to a retail electric customer.

(ii)

"Seller" includes any of the following:

1.

An electric company;

2.

An electricity supplier; and

3.

A person that operates as both an electric company and an electricity supplier.

(b)

Certification required.

(1)

On or before February 1 of each year, each seller that sells, distributes, transmits, or delivers electricity to a retail electric customer shall certify to the Director, in a manner required by the Director, the revenues from and the kilowatt hours sold, distributed, or delivered during the immediately preceding calendar year directly to all retail electric customers.

(2)

An electric company only is required to file the certification required in paragraph (1) of this subsection for calendar year 2001 and each calendar year thereafter.

(c)

Same - Subsequent years.

(1)

For each fiscal year, beginning with fiscal year 2002, there is levied and imposed a tax on the delivery, distribution, and transmission of electricity to a retail electric customer by an electric company, which tax shall be:

(i)

Except as provided in subparagraph (ii) of this paragraph, $0.005300 per kilowatt hour delivered and distributed to a retail electric customer; or

(ii)

$0.003750 per kilowatt hour delivered and distributed to a retail electric customer that is a manufacturer that:

1.

Is on tariff schedule GL-P, P., or T.; or

2.

Consumes at least 160,000,000 kilowatt hours of electricity in a single fiscal year.

(2)

(i)

The Director may recommend and the County Council may adopt changes in the amount of the tax.

(ii)

If the Director recommends and the County Council adopts a change in the amount of the tax:

1.

The tax shall take effect on the date that the budget for the following fiscal year takes effect; and

2.

The Director shall certify to each seller the amount of the tax per kilowatt hour.

(d)

Limitation. The tax imposed under this section does not apply to sales for the consumption, transmission, delivery, or distribution of electricity to a single retail electric customer in excess of 160,000,000 kilowatt hours in a single fiscal year.

(e)

Seller obligations and rights.

(1)

As applicable, each seller that sells, distributes, transmits or delivers electricity to a retail electric customer, shall itemize on each bill the tax imposed and levied under this section and shall collect the tax from the retail electric customer.

(2)

The seller has the same rights against the retail electric customer for collection of the tax as it has for collection of the electricity bill.

(f)

Required return.

(1)

This subsection does not apply to a seller that operates solely as a billing service or metering service.

(2)

By the 15th day of each month, the seller shall:

(i)

File a return with the Director, under oath and in a manner required by the Director; and

(ii)

Pay the amount of the tax billed to a retail electric customer during the second preceding month.

(3)

Each seller is liable for the taxes required to be remitted under this section.

(4)

If the seller fails to remit the tax within the time required, the seller is liable for a civil penalty of $200 for each day the tax is not timely paid.

(g)

Records to be kept by seller.

(1)

As applicable, each seller shall keep complete and accurate records of all taxable sales, deliveries, transmissions, and distributions of electricity directly to retail electric customers, which includes:

(i)

The amount of the tax collected from retail electric customers; and

(ii)

All invoices, bills of lading, and other pertinent records and documents necessary to determine the amount of the tax due under this section.

(2)

The records and other documents shall be available at all times during business hours for inspection and examination by the Director or an authorized agent of the Director.

(3)

If an electric company does not keep records from which the tax imposed under subsection (c) of this section may be accurately computed, the Director may use a factor developed by surveying other taxpayers of the same type and other taxing agencies to compute the tax due.

(h)

Additional powers of the Director. In addition to the powers granted to the Director in the preceding subsections, the Director may:

(1)

Adopt rules and regulations necessary to collect the tax;

(2)

Define any terms used in connection with the collection of the tax;

(3)

Compromise disputed claims in connection with the collection of the tax;

(4)

For good cause shown, remit interest and penalties collected;

(5)

Waive the penalty authorized under this section;

(6)

Delegate powers in connection with the collection of the tax to any agent or employee of the county as the Director considers necessary; and

(7)

For good cause shown, extend the time of filing of any return for a reasonable period.

(1988 Code, § 33-171) (Bill No. 41-00, § 2, 7-1-2000; Bill No. 38-01, § 1, 7-1-2001; Bill No. 33-03, § 2, 7-1-2004; Bill No. 39-11, § 1, 8-14-2011)

Editor's note:
  Section 2 of Bill No. 39-11 provides that this Act shall take effect August 14, 2011 and shall apply to any tax on the consumption of electricity arising on or after January 1, 2011.