Common use of CHANGES IN TAX LIABILITY Clause in Contracts

CHANGES IN TAX LIABILITY. In the event that the state of California enacts legislation to treat Contributions as taxable income to the Utility that California had previously treated as nontaxable income, the Utility may increase the amount it collects from the Contributor to include its estimate of the tax resulting therefrom. In the event that any such legislation is applied on a retroactive basis, the Utility may collect such tax for the retroactive period through general rates or surcharges. The Utility shall inform Applicant of the final cost of the installation of all services and the resulting ITCC thereon.

CHANGES IN TAX LIABILITY. In the event that the state of California enacts legislation to treat conform state law to federal law in treating Contributions as taxable income to the Utility that California had previously treated as nontaxable incomeUtility, the Utility may increase the amount it collects from the Contributor to include its estimate of the tax resulting therefrom. In the event that any such legislation is applied on a retroactive basis, the Utility may collect such tax for the retroactive period through general rates or surcharges. The Utility shall inform Applicant of the final cost of the installation of all services and the resulting ITCC thereon.