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December 1, 2009

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State refunds utility $40 mil.

Thursday, May 26, 2005 | 10:45 a.m.

CARSON CITY -- Southern California Edison Co., won a refund of more than $40 million on sales and use tax it paid Nevada, and may be in line to collect more.

Chuck Chinnock, executive director of the Nevada Tax Department, said today that the state Tax Commission agreed to the refund on May 9. The company sought the return of the taxes paid between 2001 and 2003 and Chinnock said the refund could be larger because of the taxes paid since 2003. The ruling by the tax commission could affect other companies.

Chinnock said there appears to be some conflict between the Nevada Constitution's section on net proceeds of mines and the sales and use tax law. He declined to go further since the testimony was taken in closed session by the tax commission, but the refund apparently returns taxes Southern California Edison paid in connection with the Mojave Generation Plant it operates near Laughlin.

A tax commission hearing officer had previously denied the utility's refund request and the company appealed to the tax commission.

The commission heard testimony in April and then received more testimony in a closed session before making its decision.

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