Bill Text: TX SB488 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to imposing a tax on the generation of electricity by certain electric generators to provide revenue for property tax relief.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2023-02-17 - Referred to Finance [SB488 Detail]
Download: Texas-2023-SB488-Introduced.html
| By: Springer | S.B. No. 488 | |
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| 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. | ||
