By: Springer S.B. No. 488
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  Relating to imposing a tax on the generation of electricity by
  certain electric generators to provide revenue for property tax
  relief.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by
  adding Chapter 165 to read as follows:
  CHAPTER 165. TAX ON GENERATION OF ELECTRICITY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 165.001.  DEFINITIONS. In this chapter:
               (1)  "Affiliated power generation company," "electric
  utility," and "exempt wholesale generator" have the meanings
  assigned by Section 31.002, Utilities Code.
               (2)  "Electric cooperative" has the meaning assigned by
  Section 11.003, Utilities Code.
               (3)  "Electric generator" includes:
                     (A)  an affiliated power generation company;
                     (B)  an electric utility or electric cooperative
  that owns or operates for compensation in this state equipment or
  facilities to generate electricity in this state;
                     (C)  an exempt wholesale generator; and
                     (D)  a power generation company.
               (4)  "Power generation company" has the meaning
  assigned by Section 31.002, Utilities Code, except that the term
  does not include a distributed natural gas generation facility, as
  that term is defined by Section 31.002, Utilities Code.
  SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
         Sec. 165.021.  TAX IMPOSED. A tax is imposed on each
  electric generator in this state that generates electricity using
  an energy source other than natural gas.
         Sec. 165.022.  RATE OF TAX. (a) The rate of the tax imposed
  by this chapter is determined by the comptroller in the manner
  provided by this section.
         (b)  Not later than February 15 of each year, the comptroller
  shall calculate the tax rate to be in effect for the period
  beginning February 1 of that year and ending January 31 of the
  following year, publish that rate in the Texas Register, and post
  that rate on the comptroller's Internet website. The comptroller
  shall calculate the tax rate by:
               (1)  dividing the amount of revenue received by this
  state in the preceding year attributable to the tax imposed under
  Chapter 201 by the total cubic feet of natural gas produced in this
  state in that year; and
               (2)  multiplying the amount determined under
  Subdivision (1) by the average number of cubic feet of natural gas
  used to generate one kilowatt hour of electricity in the preceding
  year.
         (c)  The Public Utility Commission of Texas and the Railroad
  Commission of Texas shall, at the request of the comptroller,
  provide any information necessary for the comptroller to calculate
  the tax rate under Subsection (b).
         Sec. 165.023.  AMOUNT OF TAX DUE. The amount of tax due for a
  month from an electric generator on whom a tax is imposed by this
  chapter is equal to the tax rate in effect for that month as
  determined under Section 165.022 multiplied by the number of
  kilowatt hours of electricity the electric generator produced
  during the preceding month using an energy source other than
  natural gas or coal.
         Sec. 165.024.  PAYMENT OF TAX. On or before the 25th day of
  each month, each electric generator on whom a tax is imposed by this
  chapter shall send to the comptroller the amount of tax due under
  this chapter for electricity produced during the preceding month.
         Sec. 165.025.  REPORTS. On or before the 25th day of each
  month, each electric generator on whom a tax is imposed by this
  chapter shall file with the comptroller a report stating:
               (1)  the number of kilowatt hours of electricity
  generated during the preceding month using an energy source other
  than natural gas or coal; and
               (2)  any other information required by the comptroller.
         Sec. 165.026.  RECORDS. An electric generator on whom a tax
  is imposed by this chapter shall keep a complete record of:
               (1)  the number of kilowatt hours of electricity
  generated during the preceding month using an energy source other
  than natural gas or coal; and
               (2)  any other information required by the comptroller.
  SUBCHAPTER C. DISPOSITION OF PROCEEDS
         Sec. 165.051.  DISPOSITION OF PROCEEDS. (a) The
  comptroller shall deposit the proceeds from the collection of the
  tax imposed by this chapter to the credit of the general revenue
  fund.
         (b)  Money deposited to the credit of the general revenue
  fund under Subsection (a) may be appropriated only to the Texas
  Education Agency for use in providing property tax relief through
  reduction of the state compression percentage, as defined by
  Section 48.255, Education Code.
         SECTION 2.  Notwithstanding Sections 165.024 and 165.025,
  Tax Code, as added by this Act, the first tax payment and report
  required under those sections is due March 25, 2024.
         SECTION 3.  This Act takes effect January 1, 2024.