Disposition of a State Sales Tax Refund
NY-ADR
4/22/20 N.Y. St. Reg. PSC-16-20-00004-P
NEW YORK STATE REGISTER
VOLUME XLII, ISSUE 16
April 22, 2020
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-16-20-00004-P
Disposition of a State Sales Tax Refund
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
The Commission is considering a petition filed by Central Hudson Gas & Electric Corporation to retain about $593,600, or 24% of a $2.5m New York State sales tax refund.
Statutory authority:
Public Service Law, section 113(2)
Subject:
Disposition of a state sales tax refund.
Purpose:
To determine how much of a state sales tax refund should be retained by Central Hudson.
Substance of proposed rule:
The Public Service Commission is considering a petition filed by Central Hudson Gas & Electric Corporation (Central Hudson) on March 16, 2020, to retain about $593,600, or about 24% of a net $2,523,311 New York State sales tax refund ($3,364,414 refund less - $841,103 costs to achieve).
The tax refund is the result of a reverse sales tax audit that Central Hudson initiated with the New York State Department of Taxation & Finance for the claim period of June 1, 2017 through December 31, 2018. Central Hudson received the refund determination letter on October 16, 2019. The Company notified the Commission of the refund via petition dated March 16, 2020. Most of the refund will be credited to plant because most of it related to sales taxes that were capitalized as part of plant costs. Central Hudson’s petition requests to retain $593,600, the portion of the net refund that was not capitalized to plant because: 1) it employed considerable time, effort and analysis, along with its consultant to achieve the refund and 2) the amount is immaterial since it falls below the 5% of net income.
The full text of the petition and the full record of the proceeding may be reviewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject or modify, in whole or in part, the action proposed and may resolve related matters.
Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:
John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected].
Data, views or arguments may be submitted to:
Michelle L. Phillips, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: [email protected].
Public comment will be received until:
60 days after publication of this notice.
Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(20-M-0134SP1)
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