- Introduced -

SB 803 - This act is implementing legislation for SJR 46 which authorizes the General Assembly to enact utility replacement taxes. Upon approval of the constitutional amendment, the act would repeal existing gross receipts taxes and business license taxes on electricity and natural gas, franchise fee agreements, tax on utility distributable property and certain payments-in-lieu-of-taxes (PILOTs). Revenue lost by political subdivisions due to the repeal of these taxes are replaced by an electricity or natural gas usage tax or charge.

The act also contains backup provisions pertaining to gross receipts taxes and sales taxes on electricity and natural gas service which are similar to SB 612 from 2000 and backup provisions revising taxes on utility distributable property. Distributable property of electric companies in the 2001 tax year shall continue to be assessed and the values distributed by the same method used in that year, even if the property is no longer owned by an electric company. Electric cooperatives shall report the number of transmission and distribution line miles owned by the cooperative in each taxing jurisdiction to the State Tax Commission. New electric generation property placed into service on or after January 1, 2001, and owned by an entity not providing electric distribution service shall be assessed and the value distributed as if it were owned by the electric company authorized to provide distribution service where the new property is located. If located in an area where no electric company is authorized to provide distribution service, the property shall be assessed and the value distributed to taxing jurisdictions based upon the proportion of electric cooperative owned line miles in the jurisdiction.

The backup provisions will become effective August 28, 2000, and will terminate on January 1, 2002, if the constitutional amendment has been adopted.

OTTO FAJEN