Opinion ID: 2345808
Heading Depth: 1
Heading Rank: 5

Heading: Issue (3): Is it permissible for a different taxation scheme to exist regarding the taxation of electricity and the taxation of natural gas?

Text: Spectrum argues that applying sales tax to the Disputed Charges for electricity when similar charges are not applied to delivery of natural gas creates an improper disparate tax scheme. Spectrum also points out that in the context of many other goods, delivery and similar incidental charges are not taxed. See, e.g., M & M/Mars, Inc., 162 Pa.Cmwlth. 375, 639 A.2d 848, 852-53 (1994) (holding cafeteria management fee is not taxable even if it is bundled with the sales price of food). Spectrum argues that the General Assembly would not have intentionally created a disparate tax scheme, and therefore that the General Assembly must have intended for electricity to be treated like natural gas and other similar goods. Spectrum's position is directly undermined by the Policy Statement which specifically states that delivery charges for electricity are subject to sales tax. 61 Pa.Code § 60.23(d). The relevant portion of the Policy Statement states as follows: Taxability of unbundled charges. To fulfill its responsibilities under Article II of the TRC, as well as[] the recognition of the intention of the General Assembly, as provided under the act, the Department is required to impose Sales and Use Tax upon the total purchase price charged upon each separate charge for the generation, transmission or distribution in connection with providing nonresidential electric utility services as well as all related charges, services or costs for the generation, production, transmission or distribution of electricity whether or not the total amount charged is billed as a single charge by one vendor or billed separately by one or more vendors. Id. (emphasis added). There is no comparable Policy Statement regarding natural gas billing. Spectrum fails to articulate why it should not be required to pay tax on electricity delivery when the Commonwealth's Department of Revenue has specifically called for electricity delivery charges to be subject to sales tax in the clear language of the Policy Statement. Although the disparate treatment of electricity and natural gas may seem illogical to Spectrum, it apparently is the scheme intended by the legislature. It is not within this Court's power to alter this scheme and the impact of any inconsistency is more properly addressed directly to the legislature. See Martin v. Soblotney, 502 Pa. 418, 466 A.2d 1022, 1025 (1983) (holding that a court may not legislate or by interpretation add to legislation, matters which the legislature saw fit not to include); Commonwealth v. Rieck Inv. Corp., 419 Pa. 52, 213 A.2d 277, 282 (1965) (stating if the plain language of [a] statute provides no such restriction, it is not for the courts to add such a restriction but a matter for legislative action).