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.), Committee Report 1st House, Substituted
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 that make sales to an ultimate consumer located in an incorporated city or town with a population of more than 1,000 regardless of their physical location.
The bill would take effect September 1, 2017.
Local Government Impact
No fiscal implication to units of local government is anticipated.