Dutton Bill Taxes Every Power Source But Gas And Coal

The text as introduced · 760 words

89R11819 CJD-D

By: Dutton
H.B. No. 5001

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 teacher pay

raises.

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 only be appropriated to provide pay

increases for teachers employed by a school district or

open-enrollment charter school.

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, 2026.

SECTION 3. This Act takes effect January 1, 2026.