Texas 2023 - 88th Regular

Texas House Bill HB4955 Compare Versions

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1	1	88R3297 CJC-D
2	2	By: Leo-Wilson H.B. No. 4955
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to imposing a tax on the generation of electricity by
8	8	certain electric generators to provide revenue for property tax
9	9	relief.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
12	12	adding Chapter 165 to read as follows:
13	13	CHAPTER 165. TAX ON GENERATION OF ELECTRICITY
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 165.001. DEFINITIONS. In this chapter:
16	16	(1) "Affiliated power generation company," "electric
17	17	utility," and "exempt wholesale generator" have the meanings
18	18	assigned by Section 31.002, Utilities Code.
19	19	(2) "Electric cooperative" has the meaning assigned by
20	20	Section 11.003, Utilities Code.
21	21	(3) "Electric generator" includes:
22	22	(A) an affiliated power generation company;
23	23	(B) an electric utility or electric cooperative
24	24	that owns or operates for compensation in this state equipment or
25	25	facilities to generate electricity in this state;
26	26	(C) an exempt wholesale generator; and
27	27	(D) a power generation company.
28	28	(4) "Power generation company" has the meaning
29	29	assigned by Section 31.002, Utilities Code, except that the term
30	30	does not include a distributed natural gas generation facility, as
31	31	that term is defined by Section 31.002, Utilities Code.
32	32	SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
33	33	Sec. 165.021. TAX IMPOSED. A tax is imposed on each
34	34	electric generator in this state that generates electricity using
35	35	an energy source other than natural gas or coal.
36	36	Sec. 165.022. RATE OF TAX. (a) The rate of the tax imposed
37	37	by this chapter is determined by the comptroller in the manner
38	38	provided by this section.
39	39	(b) Not later than February 15 of each year, the comptroller
40	40	shall calculate the tax rate to be in effect for the period
41	41	beginning February 1 of that year and ending January 31 of the
42	42	following year, publish that rate in the Texas Register, and post
43	43	that rate on the comptroller's Internet website. The comptroller
44	44	shall calculate the tax rate by:
45	45	(1) dividing the amount of revenue received by this
46	46	state in the preceding year attributable to the tax imposed under
47	47	Chapter 201 by the total cubic feet of natural gas produced in this
48	48	state in that year; and
49	49	(2) multiplying the amount determined under
50	50	Subdivision (1) by the average number of cubic feet of natural gas
51	51	used to generate one kilowatt hour of electricity in the preceding
52	52	year.
53	53	(c) The Public Utility Commission of Texas and the Railroad
54	54	Commission of Texas shall, at the request of the comptroller,
55	55	provide any information necessary for the comptroller to calculate
56	56	the tax rate under Subsection (b).
57	57	Sec. 165.023. AMOUNT OF TAX DUE. The amount of tax due for a
58	58	month from an electric generator on whom a tax is imposed by this
59	59	chapter is equal to the tax rate in effect for that month as
60	60	determined under Section 165.022 multiplied by the number of
61	61	kilowatt hours of electricity the electric generator produced
62	62	during the preceding month using an energy source other than
63	63	natural gas or coal.
64	64	Sec. 165.024. PAYMENT OF TAX. On or before the 25th day of
65	65	each month, each electric generator on whom a tax is imposed by this
66	66	chapter shall send to the comptroller the amount of tax due under
67	67	this chapter for electricity produced during the preceding month.
68	68	Sec. 165.025. REPORTS. On or before the 25th day of each
69	69	month, each electric generator on whom a tax is imposed by this
70	70	chapter shall file with the comptroller a report stating:
71	71	(1) the number of kilowatt hours of electricity
72	72	generated during the preceding month using an energy source other
73	73	than natural gas or coal; and
74	74	(2) any other information required by the comptroller.
75	75	Sec. 165.026. RECORDS. An electric generator on whom a tax
76	76	is imposed by this chapter shall keep a complete record of:
77	77	(1) the number of kilowatt hours of electricity
78	78	generated during the preceding month using an energy source other
79	79	than natural gas or coal; and
80	80	(2) any other information required by the comptroller.
81	81	SUBCHAPTER C. DISPOSITION OF PROCEEDS
82	82	Sec. 165.051. DISPOSITION OF PROCEEDS. (a) The
83	83	comptroller shall deposit the proceeds from the collection of the
84	84	tax imposed by this chapter to the credit of the general revenue
85	85	fund.
86	86	(b) Money deposited to the credit of the general revenue
87	87	fund under Subsection (a) may be appropriated only to the Texas
88	88	Education Agency for use in providing property tax relief through
89	89	reduction of the state compression percentage, as defined by
90	90	Section 48.255, Education Code.
91	91	SECTION 2. Notwithstanding Sections 165.024 and 165.025,
92	92	Tax Code, as added by this Act, the first tax payment and report
93	93	required under those sections is due March 25, 2024.
94	94	SECTION 3. This Act takes effect January 1, 2024.