§ 46-15.3-5. Water quality protection charge. (a) There is hereby imposed on each supplier of water, for the purpose of protecting the quality and safety of the public supply of water, a charge to be known as a "water quality protection charge" based upon billings for sales of every supplier of public drinking water at the rate of two and ninety two hundredth cents ($.0292) per one hundred (100) gallons of each sale, whether the water is used for drinking or other purposes. No supplier shall impose a water quality protection charge upon sales to other suppliers of drinking water. Except as provided in subsections (c), (d) and (e) hereof, the supplier shall add any water quality protection charge imposed hereunder to the sale price, and, when added, the water quality protection charge shall constitute a part of the price and shall also be a debt from the purchaser to the supplier and be collectible in the same manner and have the benefit of any lien provided for the amounts due for water charges from the purchaser to the supplier. Provided, however, the water quality protection charge shall not be subject to the sales and use tax. Subject to the provisions of § 39-1.1-1 for those suppliers which are public utilities, all suppliers may terminate service for failure of purchasers to pay the water quality protection charge.

(b) Any water quality protection charge imposed hereunder shall not take effect earlier than January 1, 1989; provided, however, the increase in water quality protection charge by one and one-third cents ($0.01333) established by P.L. 1990, Ch. 65, Art. 39, § 1 shall take effect and be chargeable on all billings for water sales made by a supplier on and after July 1, 1991.

(c) Each supplier shall provide for the exemption from the water quality protection charge, for any sale to a purchaser sixty-five (65) years of age and over purchasing water for the personal consumption of that person and other members of the person's household under reasonable rules and regulations.

(d) All commercial agricultural producers, including those who provide food and fiber, shall be exempt for that amount of water used to irrigate commercial crops either in fields or greenhouses, provided, that the producers have a conservation plan on file with their respective soil conservation districts.

(e) No water quality protection charge shall be imposed on that portion of such supplier's retail billing representing potable water furnished to customers by purchase of water in its finished, potable form from sources outside the state. The water quality protection charge imposed by a supplier purchasing potable water from outside the state shall be pro rata imposed on such supplier's retail billings for that portion of potable water supplied from within the state in accordance with rules and regulations to be finally promulgated by the water resources board on or before September 1, 1992.

(f) If any supplier of water fails to pay the water quality protection charge imposed upon it, upon determination by the water resources board of failure to pay and the amount unpaid, there shall be withheld from any state aid or grants of any nature due such supplier an equivalent amount and such monies shall be transferred to the appropriate water quality protection fund created under § 46-15.3-10.

History of Section. (P.L. 1987, ch. 417, § 1; P.L. 1988, ch. 411, § 1; P.L. 1989, ch. 323, § 1; P.L. 1989, ch. 336, § 1; P.L. 1990, ch. 65, art. 39, § 1; P.L. 1992, ch. 468, § 2; P.L. 1997, ch. 30, art. 24, § 1; P.L. 2002, ch. 65, art. 13, § 13.)