Texas 2023 - 88th Regular

Texas Senate Bill SB488 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Springer S.B. No. 488
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	Relating to imposing a tax on the generation of electricity by
7	7	certain electric generators to provide revenue for property tax
8	8	relief.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
11	11	adding Chapter 165 to read as follows:
12	12	CHAPTER 165. TAX ON GENERATION OF ELECTRICITY
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 165.001. DEFINITIONS. In this chapter:
15	15	(1) "Affiliated power generation company," "electric
16	16	utility," and "exempt wholesale generator" have the meanings
17	17	assigned by Section 31.002, Utilities Code.
18	18	(2) "Electric cooperative" has the meaning assigned by
19	19	Section 11.003, Utilities Code.
20	20	(3) "Electric generator" includes:
21	21	(A) an affiliated power generation company;
22	22	(B) an electric utility or electric cooperative
23	23	that owns or operates for compensation in this state equipment or
24	24	facilities to generate electricity in this state;
25	25	(C) an exempt wholesale generator; and
26	26	(D) a power generation company.
27	27	(4) "Power generation company" has the meaning
28	28	assigned by Section 31.002, Utilities Code, except that the term
29	29	does not include a distributed natural gas generation facility, as
30	30	that term is defined by Section 31.002, Utilities Code.
31	31	SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
32	32	Sec. 165.021. TAX IMPOSED. A tax is imposed on each
33	33	electric generator in this state that generates electricity using
34	34	an energy source other than natural gas.
35	35	Sec. 165.022. RATE OF TAX. (a) The rate of the tax imposed
36	36	by this chapter is determined by the comptroller in the manner
37	37	provided by this section.
38	38	(b) Not later than February 15 of each year, the comptroller
39	39	shall calculate the tax rate to be in effect for the period
40	40	beginning February 1 of that year and ending January 31 of the
41	41	following year, publish that rate in the Texas Register, and post
42	42	that rate on the comptroller's Internet website. The comptroller
43	43	shall calculate the tax rate by:
44	44	(1) dividing the amount of revenue received by this
45	45	state in the preceding year attributable to the tax imposed under
46	46	Chapter 201 by the total cubic feet of natural gas produced in this
47	47	state in that year; and
48	48	(2) multiplying the amount determined under
49	49	Subdivision (1) by the average number of cubic feet of natural gas
50	50	used to generate one kilowatt hour of electricity in the preceding
51	51	year.
52	52	(c) The Public Utility Commission of Texas and the Railroad
53	53	Commission of Texas shall, at the request of the comptroller,
54	54	provide any information necessary for the comptroller to calculate
55	55	the tax rate under Subsection (b).
56	56	Sec. 165.023. AMOUNT OF TAX DUE. The amount of tax due for a
57	57	month from an electric generator on whom a tax is imposed by this
58	58	chapter is equal to the tax rate in effect for that month as
59	59	determined under Section 165.022 multiplied by the number of
60	60	kilowatt hours of electricity the electric generator produced
61	61	during the preceding month using an energy source other than
62	62	natural gas or coal.
63	63	Sec. 165.024. PAYMENT OF TAX. On or before the 25th day of
64	64	each month, each electric generator on whom a tax is imposed by this
65	65	chapter shall send to the comptroller the amount of tax due under
66	66	this chapter for electricity produced during the preceding month.
67	67	Sec. 165.025. REPORTS. On or before the 25th day of each
68	68	month, each electric generator on whom a tax is imposed by this
69	69	chapter shall file with the comptroller a report stating:
70	70	(1) the number of kilowatt hours of electricity
71	71	generated during the preceding month using an energy source other
72	72	than natural gas or coal; and
73	73	(2) any other information required by the comptroller.
74	74	Sec. 165.026. RECORDS. An electric generator on whom a tax
75	75	is imposed by this chapter shall keep a complete record of:
76	76	(1) the number of kilowatt hours of electricity
77	77	generated during the preceding month using an energy source other
78	78	than natural gas or coal; and
79	79	(2) any other information required by the comptroller.
80	80	SUBCHAPTER C. DISPOSITION OF PROCEEDS
81	81	Sec. 165.051. DISPOSITION OF PROCEEDS. (a) The
82	82	comptroller shall deposit the proceeds from the collection of the
83	83	tax imposed by this chapter to the credit of the general revenue
84	84	fund.
85	85	(b) Money deposited to the credit of the general revenue
86	86	fund under Subsection (a) may be appropriated only to the Texas
87	87	Education Agency for use in providing property tax relief through
88	88	reduction of the state compression percentage, as defined by
89	89	Section 48.255, Education Code.
90	90	SECTION 2. Notwithstanding Sections 165.024 and 165.025,
91	91	Tax Code, as added by this Act, the first tax payment and report
92	92	required under those sections is due March 25, 2024.
93	93	SECTION 3. This Act takes effect January 1, 2024.