Amendment ID: S2545-56-R2

2nd Redraft Amendment 56

Closing the Corporate Energy Tax Loophole

Messrs. O'Connor and Timilty move that the proposed new draft be amended by inserting the following:-

SECTION XX. Section 5 of Chapter 59 of the General Laws is hereby amended by inserting, after “1996” in line 298, the following new sentence:-

“Any conduits, wires and pipes that extend above ground and compress, transport, or directly assist with the compression or transportation of natural gas will not be exempt from taxation of the corporations or limited liability companies described in this section or of limited liability companies engaged in the transportation of natural gas.”

Mr. O'Connor further moves that the proposed new draft be amended by inserting the following:-

SECTION XX. Section 38A of Chapter 59 of the General Laws is hereby further amended by inserting at the end the following:-

"The commissioner shall promulgate regulations to reclassify inventory reporting and assessment procedures conducted by natural gas transportation corporations or limited liability companies in municipalities that contain a natural gas compressor station. Any such regulations shall require assessments to differentiate the value for allocation between pipelines and compressor station equipment, provided that any value assessed on compressor station equipment be allocated to a municipality. The portion of the value assessed on compressor station equipment shall be allocated to a municipality based on the municipality’s respective percentage of the gross investment for compressor station equipment. The commissioner shall prescribe a manner for the allocations and expenditures of the funds that are received by a municipality containing a compressor station pursuant to this section. The commissioner shall promulgate all regulations and guidelines established in this section no later than December 31, 2018."