Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB559 by Hancock (Relating to the application of the miscellaneous gross receipts tax on utility companies.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend Subsections 182.021(1), 182.022(a), and 182.025(e)(3) of the Tax Code, regarding the application of the miscellaneous gross receipts tax on utility companies.
The bill would, in the amended subsections, remove references to a utility company's physical location and place of sales to clarify the tax responsibility of utility companies. The bill would clarify existing law that the miscellaneous gross receipts tax is due by utility companies doing business in incorporated cities or towns with a population more than 1,000 regardless of their physical location. The bill would have no revenue implications.
The bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2017.
Local Government Impact
No fiscal implication to units of local government is anticipated.