Texas Senate Bill SB559

Texas 2017 - 85th Regular

Caption

Relating to the miscellaneous gross receipts tax on utility companies.

Impact

The modifications proposed in SB559 could have significant implications for tax revenue collected from utility companies operating in larger municipalities. By defining the scope more clearly, the state anticipates increased compliance and potentially increased revenue. This change may aid in reducing confusion over the tax laws surrounding utility companies and streamline the reporting process for these entities.

Summary

SB559 amends the Texas Tax Code regarding the miscellaneous gross receipts tax imposed on utility companies. Specifically, the bill clarifies the definition of a 'utility company' and stipulates that tax applies to those making sales to consumers in incorporated cities or towns with populations of more than 1,000. The revisions aim to ensure that the legislation aligns with current interpretations and practices affecting how utility taxes are collected and enforced within municipal boundaries.

Sentiment

General sentiment around the bill has largely been supportive among state legislators, especially those focusing on tax administration improvement. While stakeholders representing utility companies may have raised concerns regarding tax burdens, the overall perspective emphasizes the need for clarity in tax legislation to prevent misinterpretations and ensure uniform application across different regions.

Contention

Notably, some members of the legislative community have raised points of contention regarding the bill’s implications on smaller municipalities and those that might not meet the population threshold. There is concern that the differentiation could disproportionately impact areas with fewer resources, as utility companies facing significant tax obligations might redirect their focus toward larger urban centers for service provision. This underlines the ongoing debate over equity in taxation measures and the distribution of resources across varying community sizes.