1105-C - Reduced tax rates with respect to certain gas service and electric service.
§ 1105-C. Reduced tax rates with respect to certain gas service and electric service. Notwithstanding any other provisions of this article or article twenty-nine of this chapter: (a) The rates of taxes imposed by this article and pursuant to the authority of article twenty-nine of this chapter on receipts from every sale of gas service or electric service of whatever nature (including the transportation, transmission or distribution of gas or electricity, but not including gas or electricity) shall be reduced each year on September first, beginning in the year two thousand, and each year thereafter, at the rate per year of twenty-five percent of the rates in effect on September first, two thousand, so that the rates of such taxes on such receipts shall be zero percent on and after September first, two thousand three. (b) The provisions of subdivision (b) of section eleven hundred six of this article shall apply to the reduced rates described in subdivision (a) of this section, as if such section referred to this section, provided that any reference in subdivision (b) of such section eleven hundred six to the date August first, nineteen hundred sixty-five, shall be deemed to refer, respectively, to September first of the applicable years described in subdivision (a) of this section, and any reference in subdivision (b) of such section eleven hundred six to July thirty-first, nineteen hundred sixty-five, shall be deemed to refer to the day immediately preceding each such September first, respectively. (c) Nothing in this section shall be deemed to exempt from the taxes imposed under this article or pursuant to the authority of article twenty-nine of this chapter any transaction which may not be subject to the reduced rates of such taxes, each year, as set forth in subdivision (a) of this section in effect on the respective September first. (d) For the purpose of the reduced rate of tax provided by subdivision (a) of this section, the following shall apply to a sale, other than a sale for resale, of the transportation, transmission or distribution of gas or electricity by a vendor not subject to the supervision of the public service commission where such transportation, transmission or distribution service being sold is wholly within a service area of the state wherein the public service commission shall have approved by formal order a single retailer model for the regulated utility which has the responsibility to serve that area. Where such a vendor makes a sale, other than a sale for resale, of gas or electricity to be delivered to a customer within such service area and, for the purpose of transporting, transmitting or distributing such gas or electricity, also makes a sale of transportation, transmission or distribution service to such customer, the charge for the transportation, transmission or distribution of gas or electricity wholly within such service area made by such vendor, notwithstanding paragraph three of subdivision (b) of section eleven hundred one of this article, shall not be included in the receipt for such gas or electricity, and, therefore, shall qualify for such reduced rate.