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A BILL TO BE ENTITLED
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AN ACT
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Relating to imposing a tax on the generation of electricity by |
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certain electric generators to provide revenue for property tax |
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relief. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle E, Title 2, Tax Code, is amended by |
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adding Chapter 165 to read as follows: |
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CHAPTER 165. TAX ON GENERATION OF ELECTRICITY |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 165.001. DEFINITIONS. In this chapter: |
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(1) "Affiliated power generation company," "electric |
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utility," and "exempt wholesale generator" have the meanings |
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assigned by Section 31.002, Utilities Code. |
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(2) "Electric cooperative" has the meaning assigned by |
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Section 11.003, Utilities Code. |
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(3) "Electric generator" includes: |
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(A) an affiliated power generation company; |
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(B) an electric utility or electric cooperative |
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that owns or operates for compensation in this state equipment or |
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facilities to generate electricity in this state; |
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(C) an exempt wholesale generator; and |
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(D) a power generation company. |
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(4) "Power generation company" has the meaning |
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assigned by Section 31.002, Utilities Code, except that the term |
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does not include a distributed natural gas generation facility, as |
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that term is defined by Section 31.002, Utilities Code. |
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SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX |
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Sec. 165.021. TAX IMPOSED. A tax is imposed on each |
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electric generator in this state that generates electricity using |
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an energy source other than natural gas. |
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Sec. 165.022. RATE OF TAX. (a) The rate of the tax imposed |
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by this chapter is determined by the comptroller in the manner |
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provided by this section. |
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(b) Not later than February 15 of each year, the comptroller |
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shall calculate the tax rate to be in effect for the period |
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beginning February 1 of that year and ending January 31 of the |
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following year, publish that rate in the Texas Register, and post |
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that rate on the comptroller's Internet website. The comptroller |
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shall calculate the tax rate by: |
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(1) dividing the amount of revenue received by this |
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state in the preceding year attributable to the tax imposed under |
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Chapter 201 by the total cubic feet of natural gas produced in this |
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state in that year; and |
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(2) multiplying the amount determined under |
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Subdivision (1) by the average number of cubic feet of natural gas |
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used to generate one kilowatt hour of electricity in the preceding |
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year. |
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(c) The Public Utility Commission of Texas and the Railroad |
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Commission of Texas shall, at the request of the comptroller, |
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provide any information necessary for the comptroller to calculate |
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the tax rate under Subsection (b). |
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Sec. 165.023. AMOUNT OF TAX DUE. The amount of tax due for a |
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month from an electric generator on whom a tax is imposed by this |
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chapter is equal to the tax rate in effect for that month as |
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determined under Section 165.022 multiplied by the number of |
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kilowatt hours of electricity the electric generator produced |
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during the preceding month using an energy source other than |
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natural gas or coal. |
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Sec. 165.024. PAYMENT OF TAX. On or before the 25th day of |
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each month, each electric generator on whom a tax is imposed by this |
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chapter shall send to the comptroller the amount of tax due under |
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this chapter for electricity produced during the preceding month. |
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Sec. 165.025. REPORTS. On or before the 25th day of each |
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month, each electric generator on whom a tax is imposed by this |
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chapter shall file with the comptroller a report stating: |
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(1) the number of kilowatt hours of electricity |
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generated during the preceding month using an energy source other |
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than natural gas or coal; and |
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(2) any other information required by the comptroller. |
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Sec. 165.026. RECORDS. An electric generator on whom a tax |
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is imposed by this chapter shall keep a complete record of: |
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(1) the number of kilowatt hours of electricity |
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generated during the preceding month using an energy source other |
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than natural gas or coal; and |
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(2) any other information required by the comptroller. |
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SUBCHAPTER C. DISPOSITION OF PROCEEDS |
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Sec. 165.051. DISPOSITION OF PROCEEDS. (a) The |
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comptroller shall deposit the proceeds from the collection of the |
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tax imposed by this chapter to the credit of the general revenue |
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fund. |
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(b) Money deposited to the credit of the general revenue |
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fund under Subsection (a) may be appropriated only to the Texas |
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Education Agency for use in providing property tax relief through |
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reduction of the state compression percentage, as defined by |
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Section 48.255, Education Code. |
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SECTION 2. Notwithstanding Sections 165.024 and 165.025, |
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Tax Code, as added by this Act, the first tax payment and report |
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required under those sections is due March 25, 2024. |
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SECTION 3. This Act takes effect January 1, 2024. |