Title: Reduction of Excise Tax on Electricity and Natural Gas
Vote Smart's Synopsis:
Vote to pass a bill that reduces the excise tax on gross proceeds from the sale of natural gas and electricity to manufacturers, effective July 1, 2011.
Reduces the excise tax levied on gross proceeds from the sale of natural gas and electricity to a manufacturer for direct use in the manufacturing process from a rate of 3.125 percent to a rate of 2.625 percent, beginning July 1, 2011 (Sec. 2).
Defines "manufacturer" as a generator of electric power who operates a new or existing generating facility that uses combined-cycle gas turbine technology (Sec. 2).
Specifies that when the amount of tax savings resulting from this reduction reaches $27 million during a fiscal year, the Director of the Department of Finance and Administration shall not process any further refund claims from taxpayers seeking to claim the reduced tax rate (Sec. 2).
Extends the statue of limitations for refunds and amended returns for 1 year (Sec. 2).
Specifies the excise tax rate levied on gross proceeds derived from the sale of natural gas and electricity to a manufacturer to operate a new or existing generating facility as follows (Sec. 2):
5.125 percent beginning July 1, 2011;
4.125 percent beginning July 1, 2012; and
2.625 percent beginning July 1, 2013.
This act is an emergency act and will become effective on July 1, 2011 (Sec. 4).