Bill Text: TX HB4955 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to imposing a tax on the generation of electricity by certain electric generators to provide revenue for property tax relief.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2023-03-23 - Referred to Ways & Means [HB4955 Detail]

Download: Texas-2023-HB4955-Introduced.html

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88R3297 CJC-D
By: Leo-Wilson H.B. No. 4955

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 or coal.
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.