By: Bivins S.B. No. 733
73R1867 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the taxation of certain natural resources.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle I, Title 2, Tax Code, is amended by
1-5 adding Chapter 204 to read as follows:
1-6 CHAPTER 204. COAL AND LIGNITE
1-7 SUBCHAPTER A. TAX IMPOSED
1-8 Sec. 204.001. Definitions. In this chapter:
1-9 (1) "Coal" includes lignite.
1-10 (2) "Lignite" means coal commonly referred to as brown
1-11 coal, of intermediate grade between peat and bituminous coal, in
1-12 which the texture of the original wood is distinct.
1-13 (3) "Producer" means a person who owns, controls,
1-14 manages, leases, or operates a lignite or coal mine or produces
1-15 lignite or coal by gasification or other in situ process or any
1-16 other method, system, or manner.
1-17 Sec. 204.002. TAX IMPOSED. A tax is imposed on each
1-18 producer of coal.
1-19 Sec. 204.003. Rate of Tax. The tax imposed by this chapter
1-20 is at a rate of 4.6 percent of the market value of the coal
1-21 produced in this state at the time the coal is removed from the
1-22 premises of the producer.
1-23 Sec. 204.004. Market Value. The market value of coal
1-24 subject to the tax imposed by this chapter is the greater of:
2-1 (1) the sales price of the coal produced less a
2-2 reasonable deduction for the cost of transportation from the place
2-3 of production to the place of sale or delivery or the nearest
2-4 available commercial market, but only to the extent the
2-5 transportation cost is included in the sales price; or
2-6 (2) the trading price of coal of the same quality at a
2-7 commercial market or exchange as reported by a newspaper or journal
2-8 of general circulation in the United States, as prescribed by the
2-9 comptroller.
2-10 (Sections 204.005-204.050 reserved for expansion
2-11 SUBCHAPTER B. RECORDS, PAYMENTS, AND REPORTS
2-12 Sec. 204.051. Producer's Records. (a) A producer shall
2-13 keep a complete record of the production, transportation, storage,
2-14 and sale of all coal that the producer produces in this state. A
2-15 producer is not required to keep a record required by this section
2-16 four years after the last entry in the record.
2-17 (b) The record shall be open at all times to inspection by
2-18 the comptroller and the attorney general.
2-19 Sec. 204.052. Producer's Reports. (a) On the last day of
2-20 each January, April, July, and October each producer shall file a
2-21 report with the comptroller on forms prescribed by the comptroller.
2-22 The report must show the total amount of coal produced in the state
2-23 by the person during the calendar quarter next preceding the day
2-24 the report is due, the total amount of all sales of coal for that
2-25 period, and the market value of all coal sold during that period.
2-26 (b) A producer shall file other information or reports with
2-27 the comptroller that the comptroller requires.
3-1 (c) The report shall be signed by the person making the
3-2 report. If the person is not an individual, the report shall be
3-3 signed by the president, secretary, or other authorized officer.
3-4 Sec. 204.053. TAX DUE. The tax imposed by this chapter for
3-5 each quarter is due at the time that the report required by Section
3-6 204.052 is required to be filed for the quarter. Payment shall be
3-7 to the comptroller.
3-8 (Sections 204.054-204.100 reserved for expansion
3-9 SUBCHAPTER C. ENFORCEMENT AND PENALTIES
3-10 Sec. 204.101. Delinquent Tax Penalty. (a) A producer who
3-11 fails to file a report as required by this chapter or who fails to
3-12 pay the tax imposed by this chapter when due forfeits five percent
3-13 of the amount due as a penalty, and if the producer fails to file
3-14 the report or pay the tax on or before the 30th day after the date
3-15 on which the tax or report is due, the producer forfeits an
3-16 additional five percent.
3-17 (b) The minimum penalty under this section is $10.
3-18 (c) The attorney general, or a district or county attorney
3-19 at the direction of the attorney general, shall bring suit in the
3-20 name of the state to recover a delinquent tax imposed by this
3-21 chapter and penalties and interest that have accrued from failure
3-22 to pay the tax.
3-23 Sec. 204.102. Failure to Keep Records; Penalty. (a) A
3-24 person who fails to keep a record that the person is required by
3-25 this chapter to keep shall forfeit to the state a penalty of not
3-26 less than $500 nor more than $5,000.
3-27 (b) A person is subject to a separate penalty for each 10
4-1 days that the person fails to keep a record that the person is
4-2 required by this chapter to keep.
4-3 (Sections 204.103-204.150 reserved for expansion
4-4 SUBCHAPTER D. CLASSIFICATION OF TAX
4-5 AND ALLOCATION OF REVENUE
4-6 Sec. 204.151. OCCUPATION TAX. The tax imposed by this
4-7 chapter is an occupation tax.
4-8 Sec. 204.152. TAX SET ASIDE. One-half of one percent of the
4-9 tax collected under this chapter shall be deposited in the state
4-10 treasury for the use of the comptroller to administer and enforce
4-11 the provisions of this chapter, to be expended in the amounts and
4-12 for the purposes prescribed by the General Appropriations Act.
4-13 Money deposited under this section that is not spent at the end of
4-14 a fiscal year reverts proportionally to the other funds to which
4-15 the tax imposed by this chapter is paid.
4-16 Sec. 204.153. ALLOCATION OF REVENUE. After deducting the
4-17 amount required to be deposited by Section 204.152, the comptroller
4-18 shall deposit one-fourth of the revenue collected from the tax
4-19 imposed by this chapter to the credit of the foundation school fund
4-20 and three-fourths to the general revenue fund.
4-21 SECTION 2. Section 201.052(a), Tax Code, is amended to read
4-22 as follows:
4-23 (a) The tax imposed by this chapter is at the rate of 4.6
4-24 <7.5> percent of the market value of gas produced and saved in this
4-25 state by the producer.
4-26 SECTION 3. (a) Chapter 204, Tax Code, as added by this Act,
4-27 takes effect January 1, 1994.
5-1 (b) Section 2 of this Act takes effect September 1, 1993,
5-2 and applies to gas produced and saved on or after that date. The
5-3 change in law made by Section 2 of this Act does not affect tax
5-4 liability accruing before the effective date of that section. That
5-5 liability continues in effect as if that section had not been
5-6 enacted, and the former law is continued in effect for the
5-7 collection of taxes due and for civil and criminal enforcement of
5-8 the liability for those taxes.
5-9 SECTION 4. The importance of this legislation and the
5-10 crowded condition of the calendars in both houses create an
5-11 emergency and an imperative public necessity that the
5-12 constitutional rule requiring bills to be read on three several
5-13 days in each house be suspended, and this rule is hereby suspended.