By Burnam H.B. No. 3608
76R7288 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition of a tax on the purchase of coal in this
1-3 state by a public utility; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
1-6 adding Chapter 161 to read as follows:
1-7 CHAPTER 161. PUBLIC UTILITY COAL TAX
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 161.001. DEFINITIONS. In this chapter:
1-10 (1) "Coal" includes lignite.
1-11 (2) "Lignite" means coal commonly referred to as brown
1-12 coal, of intermediate grade between peat and bituminous coal.
1-13 (3) "Public utility" means:
1-14 (A) a water and sewer utility, as defined by
1-15 Section 13.002, Water Code;
1-16 (B) an electric utility, as defined by Section
1-17 31.002, Utilities Code; and
1-18 (C) a gas utility, as defined by Section
1-19 101.003, Utilities Code.
1-20 (4) "Use" includes storage for use in this state, but
1-21 does not include storage for use or shipment out of this state.
1-22 (Sections 161.002-161.020 reserved for expansion
1-23 SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
1-24 Sec. 161.021. TAX IMPOSED. (a) A tax is imposed on the
2-1 purchase in this state of coal for use in this state by a public
2-2 utility engaged in business in this state.
2-3 (b) A tax is imposed on the use of any coal in this state by
2-4 a public utility engaged in business in this state.
2-5 Sec. 161.022. RATE OF TAX. The rate of the taxes imposed by
2-6 this chapter is 7.5 percent of the price paid for the coal by the
2-7 public utility.
2-8 Sec. 161.023. USE TAX DEDUCTION. A public utility may
2-9 deduct from the amount of tax otherwise imposed by Section
2-10 161.021(b) the amount of tax reported and paid under Section
2-11 161.021(a).
2-12 Sec. 161.024. PAYMENT OF TAX. On or before the 25th day of
2-13 each month, each public utility shall send to the comptroller the
2-14 amount of tax due under this chapter for the preceding month.
2-15 Sec. 161.025. REPORTS. (a) On or before the 25th day of
2-16 each month, each public utility shall file with the comptroller a
2-17 report stating:
2-18 (1) the amount of coal purchased by the public
2-19 utility for use in this state and used in this state during the
2-20 preceding month;
2-21 (2) the price of that coal; and
2-22 (3) any other information required by the comptroller.
2-23 (b) A public utility that does not purchase or use coal
2-24 during a month is not required to file a report under Subsection
2-25 (a).
2-26 (c) To determine eligibility for the exemption provided by
2-27 Subsection (b), the comptroller may require a public utility to
3-1 file an information report with the comptroller that contains any
3-2 information the comptroller requires for that determination.
3-3 Sec. 161.026. RECORDS. A public utility shall keep a
3-4 complete record of:
3-5 (1) the use of coal in this state by the public
3-6 utility;
3-7 (2) the amount of coal purchased by the public utility
3-8 for use in this state; and
3-9 (3) any other information required by the comptroller.
3-10 (Sections 161.027-161.050 reserved for expansion
3-11 SUBCHAPTER C. PENALTIES AND OFFENSES
3-12 Sec. 161.051. INTEREST ON DELINQUENT TAX. A tax imposed by
3-13 this chapter that is delinquent draws interest as provided by
3-14 Section 111.060.
3-15 Sec. 161.052. PENALTY. (a) A person on whom a tax is
3-16 imposed by this chapter and who fails to file a report as required
3-17 by this chapter or does not pay the tax when it is due forfeits to
3-18 the state a penalty of 12 percent of the amount of tax delinquent.
3-19 (b) If a report required by this chapter is not filed or a
3-20 tax imposed by this chapter is not paid within 30 days after it is
3-21 due, the person on whom the tax is imposed forfeits to the state a
3-22 penalty of an additional 12 percent of the amount of tax
3-23 delinquent.
3-24 (c) The minimum penalty under this section is $1.
3-25 Sec. 161.053. CRIMINAL PENALTY. (a) A person who violates
3-26 this chapter commits an offense.
3-27 (b) An offense under this section is a Class C misdemeanor.
4-1 (Sections 161.054-161.070 reserved for expansion
4-2 SUBCHAPTER D. ALLOCATION
4-3 Sec. 161.071. ALLOCATION OF TAX REVENUE. All of the revenue
4-4 from the tax imposed by this chapter shall be deposited to the
4-5 credit of the general revenue fund.
4-6 SECTION 2. This Act takes effect December 1, 1999, and
4-7 applies to coal purchased by a public utility on or after that
4-8 date.
4-9 SECTION 3. The importance of this legislation and the
4-10 crowded condition of the calendars in both houses create an
4-11 emergency and an imperative public necessity that the
4-12 constitutional rule requiring bills to be read on three several
4-13 days in each house be suspended, and this rule is hereby suspended.