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79R5445 CBH-D
By: Burnam H.B. No. 1090
A BILL TO BE ENTITLED
AN ACT
relating to the imposition of a tax on the use of coal and to the use
of the revenue from the tax to reduce the rate of the tax on natural
gas; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 163 to read as follows:
CHAPTER 163. COAL TAX
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 163.001. DEFINITIONS. In this chapter:
(1) "Coal" includes lignite.
(2) "Lignite" means coal commonly referred to as brown
coal, of intermediate grade between peat and bituminous coal.
(3) "Use" includes storage for use in this state, but
does not include the storage for use or shipment out of this state.
[Sections 163.002-163.020 reserved for expansion]
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 163.021. TAX IMPOSED. (a) A tax is imposed on the
purchase in this state of coal for use in this state.
(b) A tax is imposed on the use of coal in this state.
Sec. 163.022. RATE OF TAX. (a) Except as provided by
Subsection (b), the rate of the taxes imposed by this chapter is 7.5
percent of the total price paid for the coal, without regard to
where the purchase occurs, delivered at the site at which the coal
will be used, including transportation costs to that site.
(b) The rate of the taxes imposed by this chapter on coal
used in this state by a producer of coal who owns the coal in place
and who produces the coal for the producer's own use is 7.5 percent
of the fair market value of the coal, including transportation
costs to the site at which the coal is used.
Sec. 163.023. USE TAX DEDUCTION. A person may deduct from
the amount of tax otherwise imposed by Section 163.021(b) the
amount of tax reported and paid under Section 163.021(a).
Sec. 163.024. PAYMENT OF TAX. On or before the 25th day of
each month, each person on whom a tax is imposed by this chapter
shall send to the comptroller the amount of tax due under this
chapter for the preceding month.
Sec. 163.025. REPORTS. On or before the 25th day of each
month, each person on whom a tax is imposed by this chapter shall
file with the comptroller a report stating:
(1) the amount of coal purchased by the person for use
in this state and used in this state during the preceding month and
the total price of that coal;
(2) the amount of coal used in this state by a producer
of coal who owns the coal in place and who produces the coal for the
producer's own use, and the total market value of that coal; and
(3) any other information required by the comptroller.
Sec. 163.026. RECORDS. A person on whom a tax is imposed by
this chapter shall keep a complete record of:
(1) the amount of coal purchased by the person for use
in this state;
(2) the use of coal in this state by the person; and
(3) any other information required by the comptroller.
[Sections 163.027-163.050 reserved for expansion]
SUBCHAPTER C. PENALTIES AND OFFENSES
Sec. 163.051. INTEREST ON DELINQUENT TAX. A tax imposed by
this chapter that is delinquent draws interest as provided by
Section 111.060.
Sec. 163.052. PENALTY. (a) A person on whom a tax is
imposed by this chapter and who fails to file a report as required
by this chapter or does not pay the tax when it is due forfeits to
the state a penalty of 12 percent of the amount of tax delinquent.
(b) If a report required by this chapter is not filed or a
tax imposed by this chapter is not paid within 30 days after it is
due, the person on whom the tax is imposed forfeits to the state a
penalty of an additional 12 percent of the amount of tax delinquent.
(c) The minimum penalty under this section is $1.
Sec. 163.053. CRIMINAL PENALTY. (a) A person who violates
this chapter commits an offense.
(b) An offense under this section is a Class C misdemeanor.
[Sections 163.054-163.070 reserved for expansion]
SUBCHAPTER D. ALLOCATION AND USE
Sec. 163.071. ALLOCATION OF TAX REVENUE. All of the
revenue from the tax imposed by this chapter shall be deposited to
the credit of the general revenue fund.
SECTION 2. Section 201.052, Tax Code, is amended to read as
follows:
Sec. 201.052. RATE OF TAX. [(a)] The tax imposed by this
chapter is at the rate of 6.7 [7.5] percent of the market value of
gas produced and saved in this state by the producer.
SECTION 3. Subchapter I, Chapter 201, Tax Code, is amended
by adding Section 201.405 to read as follows:
Sec. 201.405. TRANSFER TO ECONOMIC STABILIZATION FUND. Not
later than the 90th day of each fiscal year, the comptroller shall
transfer from the general revenue fund to the economic
stabilization fund an amount equal to the amount the comptroller
would have transferred to that fund under Section 49-g(e), Article
III, Texas Constitution, if the rate of the tax imposed under this
chapter were equal to the rate at which the tax was imposed on
August 31, 2005.
SECTION 4. The change in law made by this Act does not
affect tax accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 5. This Act takes effect September 1, 2005.