|
Consulting |
Abbreviations |
Search |
BGE Files Supplier Tariff Revision to Clarify Tax Responsibilities
Email This Story
November
8, 2010
Baltimore Gas & Electric has filed revisions to its electric supplier coordination tariff to, "clearly reflect the responsibilities of the Company and the [retail] Supplier with regard to billing and collection of taxes."
BGE said that its and the supplier's responsibilities associated with state taxes depend on whether a supplier's charges are part of a utility consolidated bill or dual billing. "The entity that originates the charge shall remit, file and is liable for the Maryland sales tax applicable to its charges. The billing entity, the Company if the customer is consolidated billed, or the Supplier if dual billed, shall present the tax on the bill and collect the tax," BGE said.
Text has been added to Section 12.7 of the tariff to describe the billing and remittance responsibility of sales tax with respect to suppliers participating in the BGE purchase of receivable program. Specifically, "[i]f the Supplier uses the Electric Company Consolidated Billing option, the Company must purchase all receivables associated with the electric supply charges, including the Maryland Sales Tax amount associated with that supply charge. As a result, the Company will bill and collect the Sales tax from the customer and will remit the sales tax to the Supplier (net of discount) as part of the Purchase of Receivables requirements. The Supplier is responsible for remitting all sales taxes on all Supplier charges to the State of Maryland, whether the receivable is purchased by The Company or not."
Local (distribution) energy taxes are calculated, collected, and remitted by BGE and are not the responsibility of the supplier.
If the supplier uses dual billing, the supplier must present and collect the Maryland Sales Taxes on its dual bill, and remit the taxes to the State of Maryland.
Copyright 2010 Energy Choice Matters. If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.
Be Seen By Energy Professionals in Retail and Wholesale Marketing
Run Ads with Energy Choice Matters
Call Paul Ring
954-
|
Consulting |
Abbreviations |
Search |
