Excess Electric Profits Proposal = $80 MWh rate maximum-
That is, if you have a nexus in California and are subject to California Income Taxes. Here is an excerpt from the proposed Senate Bill:
LEGISLATIVE COUNSEL'S DIGEST SB 1, as amended, Soto. Personal income and bank and corporation taxes: electrical windfall profits tax: consumer credit.
33001. (a) In addition to the tax imposed pursuant to this division, there is hereby imposed on sellers of electricity in this state an electric windfall profits tax in an amount equal to that portion of the sales price of electricity sold in this state that exceeds the base price. (b) For purposes of this part: (1) "Base price" means eighty dollars ($80) per megawatt hour of electricity sold, or any subsequent price developed and approved by the California Public Utilities Commission (CPUC) that is based on an industry wide average of the cost of selling electricity, as adjusted for a reasonable allowance for profit margins and maintenance and operational expenses. (2) "Sellers of electricity" include individuals, partnerships, limited partnerships, joint ventures, trusts, associations, corporations, Subchapter S corporations, or any other entity that is a producer, generator, wholesaler, marketer, broker, or other vendor of electricity. (c) It shall be presumed that the tax imposed pursuant to this part is the amount of tax withheld and remitted or required to be remitted to the Franchise Tax Board pursuant to Sections 33002 and 33003. 33002. (a) Except with respect to a seller of electricity described in Section 33003, the California Independent Systems Operator, any utility distribution company, or any other person or entity in this state that processes or is required to process sales of electricity, shall withhold from payments made to sellers of electricity 100 percent of that portion of the sales price of electricity that is subject to the electric windfall profits tax imposed by this part. |
