(1) In this regulation, the following terms have the meanings indicated.
(2) Terms Defined.
(a) "On site generated electricity" has the meaning stated in Tax-General Article, §11-1A-01(b)(2), Annotated Code of Maryland.
(b) "Owner" has the meaning stated in Tax-General Article, §11-1A-01(c), Annotated Code of Maryland.
(c) "Public service company" has the meaning stated in Tax-General Article, §8-401(f), Annotated Code of Maryland.
(d) "Substantially the same ownership" means that identical persons or governmental entities are the owners of a facility that generates electricity and a building or machinery and equipment that consumes the electricity and their ownership interest in each varies by 10 percent or less.
B. The special use tax on electricity applies to the use in this State of electricity not delivered by a public service company and which is generated by a facility:
(1) The owner of which, together with any tenants of the owner, does not consume at least 80 percent of the electricity generated by the facility each year;
(2) That is not operated by the owner or a designee of the owner; or
(3) Owned by more than one person or governmental entity where the ownership of the facility and the ownership of the building or machinery and equipment that consumes the electricity are not substantially the same ownership.
C. The special use tax on electricity does not apply to:
(1) Electricity used for residential purposes;
(2) Electricity used exclusively for emergency back-up generation; and
(3) On-site generated electricity.
D. The provisions of Tax-General Article, Title 11, Subtitles 3, 4, 5, 6, and 7, Annotated Code of Maryland, regarding tax computation and statement, tax collection, returns and records, tax payment, and licensing apply to the special use tax on electricity.
E. In addition to the information required under Tax-General Article, Title 11, Subtitle 5, the returns of a vendor or buyer of electricity that is subject to the special use tax on electricity shall state for the period that the return covers the:
(1) Kilowatt hours of electricity that are subject to the special use tax on electricity; and
(2) Special use tax on electricity that is due.
F. The rate of the special use tax on electricity is 0.062 cents for each kilowatt hour of electricity that is subject to the tax.
G. The special use tax is in addition to any other sales and use tax due on the sale of the electricity.
H. The provisions of the Tax-General Article, Title 13, Annotated Code of Maryland, which apply to sales and use taxes, apply to the special use tax on electricity.