Source: http://leg.mt.gov/bills/billhtml/HB0174.htm
Timestamp: 2017-10-22 04:50:24
Document Index: 160316636

Matched Legal Cases: ['art 7', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1']

Montana HB 174
AN ACT GENERALLY REVISING THE TAXATION OF ELECTRICAL GENERATION FACILITIES TO COMPORT WITH THE EMERGING COMPETITIVE MARKETS IN THE SUPPLY OF ELECTRICITY; CREATING CLASS THIRTEEN PROPERTY TO INCLUDE ELECTRICAL GENERATION FACILITIES; PROVIDING A DEFINITION OF "ELECTRICAL GENERATION FACILITIES"; PROVIDING AN EXCEPTION FOR QUALIFYING SMALL POWER PRODUCTION FACILITIES; TAXING ALL ELECTRICAL GENERATION FACILITIES THAT WERE PREVIOUSLY TAXED UNDER CLASS NINE AS CLASS THIRTEEN PROPERTY; TAXING CLASS THIRTEEN PROPERTY AT 6 PERCENT OF ITS MARKET VALUE; IMPOSING A 0.015 CENT PER KILOWATT-HOUR WHOLESALE ENERGY TRANSACTION TAX ON THE TRANSMISSION OF ELECTRICITY IN THE STATE; PROVIDING EXEMPTIONS FROM THE WHOLESALE ENERGY TRANSACTION TAX; ALLOWING THE ELECTRIC ENERGY PRODUCERS' LICENSE TAX TO BE ITEMIZED ON A CUSTOMER'S BILL; PROVIDING FOR THE DISTRIBUTION OF WHOLESALE ENERGY TRANSACTION TAX REVENUE TO TAXING JURISDICTIONS; PROVIDING A STATUTORY APPROPRIATION FOR THE DISTRIBUTION OF TAX REVENUE TO TAXING JURISDICTIONS; REVISING THE CLASSIFICATION OF COUNTIES; REVISING THE DEBT LIMITS OF TAXING JURISDICTIONS; AMENDING SECTIONS 7-1-2111, 7-7-107, 7-7-2101, 7-7-2203, 7-7-4201, 7-7-4202, 7-14-2524, 7-14-2525, 7-16-2327, 7-16-4104, 15-6-141, 15-51-102, 17-7-502, 20-9-406, AND 69-8-211, MCA; AND PROVIDING EFFECTIVE DATES, APPLICABILITY DATES, AND A TERMINATION DATE.
Section 1. Short title. [Sections 1 through 14] may be cited as the "Electrical Generation Tax Reform Act".
Section 2. Legislative findings and declaration of purpose. (1) The legislature finds that the restructuring of the electric utility industry in Montana implemented by Chapter 505, Laws of 1997, including the unbundling of services and the provision that allows Montana customers to choose their supplier of electricity and related services in a competitive market, renders the existing method of property taxation of the electric utility industry an impediment to competition.
(2) The legislature further finds that the restructuring of the electric utility industry necessitates changes to the existing system of property taxation that include reducing the tax rate applied to electrical generation facilities and imposing a replacement tax in order to:
(a) avoid placing a supplier engaged in the business of generating, supplying, or selling electricity at a competitive advantage or disadvantage;
(b) preserve the revenue base of the existing property tax system for taxing jurisdictions in the state;
(c) minimize the shift in tax burden and the imposition of a higher tax burden on consumers of electricity; and
(d) minimize additional administrative costs and the burden of compliance.
(3) The legislature further finds that a reduction in the property tax rates applied to electrical generation facilities must be replaced by a wholesale energy transmission tax imposed on each kilowatt hour of electricity transmitted in the state.
(4) The legislature further finds that existing property tax rates applied to electrical transmission and distribution systems are appropriate for a regulated function.
(5) The legislature therefore declares that there is a compelling public need to modify the existing system of property taxation of electrical generation facilities and to impose a wholesale energy transaction tax on kilowatt hours of electricity transmitted in the state to ensure competitive neutrality and to provide replacement revenue to taxing jurisdictions in the state.
Section 3. Definitions. As used in [sections 1 through 14], unless the context requires otherwise, the following definitions apply:
(1) "Customer" or "purchaser" means a person who acquires for consideration electricity for use or consumption and not for resale.
(2) "Distribution services provider" means a person controlling or operating distribution facilities for distribution of electricity to the public. A distribution services provider includes a purchaser who takes electricity directly from a transmission line and a purchaser who generates electricity for the purchaser's own use but does not include electricity generated by the purchaser for noncommercial use or for agricultural use.
(3) "Person" means an individual, estate, trust, receiver, cooperative association, corporation, limited liability company, firm, partnership, joint venture, syndicate, or other entity, including any gas or electric utility owned or operated by a county, municipality, or other political subdivision of the state.
(4) "Transmission services provider" means a person controlling or operating transmission facilities as that term is defined in 69-8-103.
Section 4. Wholesale energy transaction tax -- rate of tax -- exemptions -- cost recovery. (1) (a) Except as provided in subsection (3), a wholesale energy transaction tax is imposed upon electricity transmitted within the state as provided in this section. The tax is imposed at a rate of 0.015 cent per kilowatt hour of electricity transmitted by a transmission services provider in the state.
(b) For electricity produced in the state for delivery outside of the state, the taxpayer is the person owning or operating the electrical generation facility producing the electricity. The transmission services provider shall collect the tax from the person based upon the kilowatt hours introduced onto transmission lines from the electrical generation facility. The amount of kilowatt hours subject to tax must be reduced by 5% to compensate for transmission line losses.
(c) For electricity produced in the state for delivery within the state, the taxpayer is the distribution services provider. The transmission services provider shall collect the tax based upon the amount of kilowatt hours of electricity delivered to the distribution services provider. The taxpayer may apply for a refund for overpayment of taxes pursuant to [section 13].
(b) If the transmission services provider is an agency of the United States government, the distribution services provider receiving the electricity shall self-assess the tax subject to the provisions of [sections 1 through 14].
(b) Electricity produced in the state by an agency of the of the United States government for delivery outside of the state is exempt from the tax imposed by this section.
(c) Electricity delivered to a distribution services provider that is a municipal utility described in 69-8-103(5)(b) or a rural electric cooperative organized under the provisions of Title 35, chapter 18, is exempt from the tax imposed by this section.
(d) Electricity delivered to a purchaser that receives its power directly from a transmission or distribution facility owned by an entity of the United States government on or before May 2, 1997, or electricity that is transmitted exclusively on transmission or distribution facilities owned by an entity of the United States government on or before May 2, 1997, is exempt from the tax imposed by this section.
(e) Electricity delivered by a distribution services provider to a customer with loads of 1,000 kilowatts or greater that was first served by a public utility after December 31, 1996, is exempt from the tax imposed by this section, provided that the customer purchases the electricity pursuant to a contract or contracts that establish the purchase price or prices of electricity. The exemption allowed by this subsection (3)(e) does not apply to electricity purchased under a renewal or extension of an existing contract or existing contracts.
(4) A distribution services provider is allowed to recover the tax imposed by this section and the administrative costs to comply with [sections 1 through 14] in its rates.
Section 5. Multistate exemption. A person, upon proof that the person has paid a tax in another state on the transmission of electricity, is allowed a credit against the tax imposed by [sections 1 through 14] if the tax has been paid in another state.
Section 6. Collection of wholesale energy transaction tax -- disposition of revenue. (1) A transmission services provider shall collect the tax imposed under [section 4] from the taxpayer and pay the tax collected to the department. If the transmission services provider collects a tax in excess of the tax imposed by [section 4], both the tax and the excess must be remitted to the department.
(2) A self-assessing distribution services provider is subject to the provisions of [sections 1 through 14].
(3) The wholesale energy transaction tax collected under [sections 1 through 14] must be deposited in the general fund.
Section 7. Returns -- payment -- authority of department. (1) On or before the 30th day of the month following the end of the calendar quarter in which the tax imposed by [sections 1 through 14] is payable, a return, on a form provided by the department, and payment of the tax for the preceding calendar quarter must be filed with the department.
(2) Each person engaged in transmitting electricity in this state that is subject to the tax under [sections 1 through 14] shall file a return.
(3) (a) A person required to collect and pay to the department the tax imposed by [sections 1 through 14] shall keep records, render statements, make returns, and comply with the provisions of [sections 1 through 14] and the rules prescribed by the department. Each return or statement must include the information required by the rules of the department.
(b) For the purpose of determining compliance with the provisions of [sections 1 through 14], the department is authorized to examine or cause to be examined any books, papers, records, or memoranda relevant to making a determination of the amount of tax due, whether the books, papers, records, or memoranda are the property of or in the possession of the person filing the return or another person. In determining compliance, the department may use statistical sampling and other sampling techniques consistent with generally accepted auditing standards. The department may also:
Section 8. Examination of return -- adjustments -- delivery of notices and demands. (1) If the department determines that the amount of tax due is different from the amount reported, the amount of tax computed on the basis of the examination conducted pursuant to [section 7] constitutes the tax to be paid.
(2) If the tax due exceeds the amount of tax reported as due on the taxpayer's return, the excess must be paid to the department within 30 days after notice of the amount and demand for payment is mailed or delivered to the person making the return unless the taxpayer files a timely objection as provided in 15-1-211. If the amount of the tax found due by the department is less than that reported as due on the return and has been paid, the excess must be credited or, if no tax liability exists or is likely to exist, refunded to the person making the return.
(a) sent by mail to the taxpayer at the address given in the taxpayer's return, if any, or to the taxpayer's last-known address; or
Section 9. Penalties and interest for violation. (1) (a) A person who fails to file a return as required by [section 7] must be assessed a penalty as provided in [section 1 of House Bill No. 132]. The department may waive the penalty as provided in 15-1-206.
(b) A person who fails to file the return required by [section 7] and to pay the tax before the due date must be assessed penalty and interest as provided in [section 1 of House Bill No. 132]. The department may waive any penalty pursuant to 15-1-206.
(2) A person who purposely fails to pay the tax when due must be assessed an additional penalty as provided in [section 1 of House Bill No. 132].
Section 10. Authority to collect delinquent taxes. (1) (a) The department shall collect taxes that are delinquent as determined under [sections 1 through 14].
(b) If a tax imposed by [sections 1 through 14] or any portion of the tax is not paid when due, the department may issue a warrant for distraint as provided in Title 15, chapter 1, part 7.
Section 11. Interest on deficiency -- penalty. (1) Interest accrues on unpaid or delinquent taxes as provided in [section 1 of House Bill No. 132]. The interest must be computed from the date on which the return and tax were originally due.
(2) If the payment of a tax deficiency is not made within 60 days after it is due and payable and if the deficiency is due to negligence on the part of the taxpayer but without fraud, the penalty imposed by [section 1(1)(c) of House Bill No. 132] must be added to the amount of the deficiency.
Section 12. Limitations. (1) Except in the case of a person who purposely or knowingly, as those terms are defined in 45-2-101, files a false or fraudulent return violating the provisions of [sections 1 through 14], a deficiency may not be assessed or collected with respect to a month or quarter for which a return is filed unless the notice of additional tax proposed to be assessed is mailed to or personally served upon the taxpayer within 5 years from the date on which the return was filed. For purposes of this section, a return filed before the last day prescribed for filing is considered to be filed on the last day.
Section 13. Refunds -- interest -- limitations. (1) A claim for a refund or credit as a result of overpayment of taxes collected under [sections 1 through 14] must be filed within 5 years of the date on which the return was due, without regard to any extension of time for filing.
(2) (a) Interest on an overpayment must be paid or credited at the same rate as the interest rate charged on [unpaid taxes as provided in [section 1 of House Bill No. 132]].
(b) Except as provided in subsection (2)(c), interest must be paid from the date on which the return was due or the date of overpayment, whichever is later. Interest does not accrue during any period in which the processing of a claim is delayed more than 30 days because the taxpayer has not furnished necessary information.
(i) the overpayment is refunded or credited within 6 months of the date on which a claim was filed; or
Section 14. Administration -- rules. The department shall:
(1) administer and enforce the provisions of [sections 1 through 14];
(2) cause to be prepared and distributed forms and information that may be necessary to administer the provisions of [sections 1 through 14]; and
(3) adopt rules that may be necessary or appropriate to administer and enforce the provisions of [sections 1 through 14].
Section 15. Electrical generation property tax reduction -- reimbursement to local taxing jurisdictions -- statutory appropriation. (1) (a) The department shall calculate the amount of revenue lost to each local taxing jurisdiction, using previous year mill levies, because of the reduction in the tax rate from 12% to 6% applied to electrical generation facilities described in [section 27]. The department shall total the amounts for all taxing jurisdictions within the county that had electrical generation facilities on January 1, 1997.
(b) The calculation must be based on the number of mills levied in each jurisdiction for the previous tax year. The amount of the reimbursement is equal to the difference of the amount determined by multiplying 12% of the assessed value of the electrical generation facilities described in [section 27] in tax year 1999 in the local taxing jurisdiction by the previous tax year mill levy in the jurisdiction and the amount determined by multiplying 6% of the assessed value of the electrical generation facilities described in [section 27] in the current tax year in the taxing jurisdiction by the previous tax year mill levy in the jurisdiction.
(2) Each fiscal year, beginning in the fiscal year beginning July 1, 2000, the department shall biannually remit to each county treasurer 50% of the amount of county property tax revenue lost because of the rate reduction of electrical generation facilities from 12% to 6%, as determined under subsection (1). The payment must be made on or before November 30 and May 31 of each fiscal year, as adjusted by the result of dissolved or combined taxing jurisdictions, as provided for in subsection (5).
(3) Upon receipt of the reimbursement from the department, the county treasurer shall distribute the reimbursement to each taxing jurisdiction as calculated by the department.
(4) (a) For the purposes of this section and subject to subsection (5), "local taxing jurisdiction" means a jurisdiction levying mills against electrical generation facilities and includes but is not limited to a county, city, consolidated county and city government, school district, community college district, tax increment financing district, and miscellaneous taxing district. The term includes countywide mills levied for equalization of retirement under 20-9-501 or transportation under Title 20, chapter 10, part 1.
(b) The term does not include county or state school equalization levies provided for in 20-9-331, 20-9-333, and 20-9-360 or the 6-mill university levy. It also does not include any state levy for welfare programs provided for in 53-2-813.
(5) The following apply to taxing jurisdictions that were altered after tax year 1999:
(a) A taxing jurisdiction that existed in tax year 1999 and that no longer exists is not entitled to reimbursement under this section.
(b) A taxing jurisdiction that existed in tax year 1999 and that is split into two or more taxing jurisdictions or that is annexed to or is consolidated with another taxing jurisdiction is entitled to reimbursement based on the portion of 1999 taxable value within each new taxing jurisdiction. The department shall determine the portion of 1999 taxable value located in each taxing jurisdiction.
(c) A taxing jurisdiction that did not exist in tax year 2000 is not entitled to reimbursement under this section unless the jurisdiction was created as described in subsection (5)(b).
(6) The amounts necessary for the administration of this section are statutorily appropriated, as provided in 17-7-502, from the general fund to reimburse eligible taxing jurisdictions for reductions in tax rates on electrical generation facilities.
Section 16. Section 7-1-2111, MCA, is amended to read:
(f) 50% of the taxable value in the county on December 31, 1999, attributable to electrical generation property under 15-6-141; and
Section 17. Section 7-7-107, MCA, is amended to read:
"7-7-107. Limitation on amount of bonds for city-county consolidated units. (1) Except as provided in 7-7-108, no a city-county consolidated local government may not issue bonds for any purpose which that, with all outstanding indebtedness, may exceed exceed 39% of the taxable value of the property therein in the local government subject to taxation, as ascertained by the last assessment for state and county taxes, plus an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the local government for tax year 1999, multiplied by 39%.
Section 18. Section 7-7-2101, MCA, is amended to read:
(b) an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by 23%; and
Section 19. Section 7-7-2203, MCA, is amended to read:
(c) an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by 11.25%.
Section 20. Section 7-7-4201, MCA, is amended to read:
(b) an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the city or town for tax year 1999, multiplied by 28%.
Section 21. Section 7-7-4202, MCA, is amended to read:
(b) an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the city or town for tax year 1999, multiplied by 55%."
Section 22. Section 7-14-2524, MCA, is amended to read:
(b) an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by 11.25%.
(2) A county may issue bonds that, with all outstanding bonds and warrants, will exceed 11.25% but will not exceed 22.5% of the total of the taxable value of the property, plus an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by the amount that exceeds 11.25% but does not exceed 22.5%, plus the value provided by the department of revenue under 15-36-324(13) when necessary for the purpose of replacing, rebuilding, or repairing county buildings, bridges, or highways that have been destroyed or damaged by an act of God or by a disaster, catastrophe, or accident.
Section 23. Section 7-14-2525, MCA, is amended to read:
Section 24. Section 7-16-2327, MCA, is amended to read:
(ii) an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by 13%.
Section 25. Section 7-16-4104, MCA, is amended to read:
(2) The total amount of indebtedness authorized to be contracted in any form, including the then-existing indebtedness, may not at any time exceed 16.5% of the taxable value of the taxable property of the city or town, as ascertained by the last assessment for state and county taxes previous to the incurring of the indebtedness, plus an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the city or town for tax year 1999, multiplied by 16.5%. Money may not be borrowed for any purpose on bonds issued for the purchase of lands and improving the land until the proposition has been submitted to the vote of the qualified electors of the city or town and a majority vote is cast in favor of the proposition."
Section 26. Section 15-6-141, MCA, is amended to read:
(a) centrally assessed allocations of an electric power companies' allocations company or centrally assessed allocations of an electric power company that owns or operates transmission or distribution facilities or both, including, if congress passes legislation that allows the state to tax property owned by an agency created by congress to transmit or distribute electrical energy, allocations of properties constructed, owned, or operated by a public agency created by the congress to transmit or distribute electric energy produced at privately owned generating facilities, not including rural electric cooperatives. However, rural electric cooperatives' property used for the sole purpose of serving customers representing less than 95% of the electric consumers located within the incorporated limits of a city or town of more than 3,500 persons in which a centrally assessed electric power company also owns property is included. For purposes of this subsection (1)(a), "property used for the sole purpose" does not include a headquarters, office, shop, or other similar facility.
Section 27. Class thirteen property -- description -- taxable percentage. (1) Except as provided in subsections (2)(a) through (2)(d), class thirteen property includes:
(a) electrical generation facilities of a centrally assessed electric power company;
(b) electrical generation facilities owned or operated by an exempt wholesale generator or an entity certified as an exempt wholesale generator pursuant to section 32 of the Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a; and
(c) noncentrally assessed electrical generation facilities owned or operated by any electrical energy producer.
(b) property owned by cooperative rural electric cooperative associations classified under 15-6-137;
(c) allocations of electric power company property under 15-6-141; and
(d) electrical generation facilities included in another class of property.
(3) (a) For the purposes of this section, "electrical generation facilities" means any combination of a physically connected generator or generators, associated prime movers, and other associated property, including appurtenant land and improvements and personal property, that are normally operated together to produce electric power. The term includes but is not limited to generating facilities that produce electricity from coal-fired steam turbines, oil or gas turbines, or turbine generators that are driven by falling water.
(c) The term also does not include a qualifying small power production facility, as that term is defined in 16 U.S.C. 796(17), that is owned and operated by a person not primarily engaged in the generation or sale of electricity other than electric power from a small power production facility and classified under 15-6-134 and 15-6-138.
(4) Class thirteen property is taxed at 6% of its market value.
Section 28. Section 15-51-102, MCA, is amended to read:
"15-51-102. Payment of tax -- not to may be set out itemized on customers' bills. The license tax shall must be remitted with the statement and paid on or before the 30th day of the month after each calendar quarter. No A customer's bill, or statement, or account rendered or given any customer by any organization affected by the provisions of this chapter shall set out or contain as a separate item any amount on account or by reason of the license tax imposed by this chapter may contain an itemized amount of the tax imposed by 15-51-101."
Section 29. Section 17-7-502, MCA, is amended to read:
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; [section 15]; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 20-8-107; 20-8-111; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 53-6-703; 53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-131; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-161; 85-20-402; 87-1-513; 90-3-301; 90-4-215; 90-6-331; and 90-9-306.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; [section 15]; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-205; 19-19-305; 19-19-506; 20-8-107; 20-9-361; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161; 85-1-220; 85-20-402; 87-1-513; 90-4-215; 90-6-331; 90-7-220; 90-7-221; and 90-9-306.
Section 30. Section 20-9-406, MCA, is amended to read:
(ii) an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the district for tax year 1999, multiplied by 45%.
(ii) an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the district for tax year 1999, multiplied by 90%.
Section 31. Section 69-8-211, MCA, is amended to read:
"69-8-211. Public utilities -- transition costs and charges -- rate moratorium. (1) Subject to the provisions of this section, the commission shall allow recovery of the following categories of transition costs:
(c) the unmitigable transition costs related to public utility-owned generation and other power purchase contracts, except that recovery of those costs is limited to the amount accruing during the first 4 years after the commission enters an order pursuant to 69-8-202(3); and
(d) Unless otherwise provided for in this chapter, only costs related to existing investments and power purchase contracts identified in subsection (2)(c) and costs arising from those investments and power purchase contracts may be included as transition costs.
(3) (a) On commission approval of the amount of a public utility's transition costs, those costs must be recovered through the imposition of a transition charge.
(5) Approval of transition costs and collection of those transition costs through transition charges is a settlement of all transition costs claims by a public utility. A public utility seeking to recover transition costs through any means not authorized by this chapter may not collect transition charges with respect to these transition costs.
(b) From July 1, 2000, through June 30, 2002, and only for those customers subject to the provisions of 69-8-201(1)(b), public utilities may not increase that increment of rates normally allocated to electric supply-related costs above the increment associated with electric supply-related costs reflected in rates in effect on July 1, 1998. Beginning on July 1, 2000, public utilities may propose increases to those increments of rates normally allocated to transmission and distribution costs.
(d) portions of the increase or decrease in the annual state and local property tax expense that are greater than the payment or adjustment that results from applying the industry-recognized rates of inflation to the increase or decrease in the state and local property tax expense reflected in rates as of has occurred since May 2, 1997.
(9) Public utilities shall apply savings resulting under 69-8-503 toward the rate moratorium pursuant to subsection (6).
(11) The commission shall issue the accounting orders necessary to align rate moratorium timing and requirements to actual transition bonds savings."
Section 32. Codification instruction. (1) [Sections 1 through 14] are intended to be codified as an integral part of Title 15, and the provisions of Title 15 apply to [sections 1 through 14].
(2) [Section 15] is intended to be codified as an integral part of Title 15, chapter 1, part 1, and the provisions of Title 15, chapter 1, part 1, apply to [section 15].
(3) [Section 27] is intended to be codified as an integral part of Title 15, chapter 6, part 1, and the provisions of Title 15, chapter 6, part 1, apply to [section 27].
Section 33. Coordination instruction. If House Bill No. 132 is not passed and approved then:
(1) the bracketed language referring to unpaid taxes in [section 13(2)(a) of this act] is void and the phrase "delinquent taxes" must be inserted; and
(2) [sections 9 and 11 of this act] must read as follows:
"NEW SECTION. Section 9. Penalties and interest for violation. (1) (a) If a person, without purposely or knowingly violating any requirement imposed by [sections 1 through 14], fails to file a return and pay the tax on or before the due date, there must be imposed a penalty of 5% of the balance of debt unpaid with respect to the return as of the date due, but the penalty for failure to file a return by its due date may not be less than $20. The department may abate the penalty if the person establishes that the failure to file on time was due to reasonable cause and was not due to neglect by the taxpayer.
(b) If a person, without purposely or knowingly violating any requirement imposed by [sections 1 through 14], fails to pay a debt on or before the due date, there must be added to the debt a penalty of 10% of the debt, but not less than $20, and interest must accrue on the debt at a rate of 1% for each month or fraction of a month for the entire period that the debt remains unpaid. The department may abate the penalty if the person establishes that the failure to pay was due to reasonable cause and was not due to neglect by the taxpayer. The department shall adopt rules that define reasonable cause.
(2) If a person purposely or knowingly violates any requirement imposed by [sections 1 through 14] by failing to file a return or to pay a debt, there must be added to the debt an additional amount equal to 25% of the debt, but not less than $50, and interest at 1% for each month or fraction of a month during which the debt remains unpaid."
"NEW SECTION. Section 11. Interest on deficiency -- penalty. (1) Interest accrues on unpaid or delinquent taxes at the rate of 1% for each month or fraction of a month during which the taxes remain unpaid. The interest must be computed from the date on which the return and tax were originally due.
(2) If the payment of a tax deficiency is not made within 60 days after it is due and payable and if the deficiency is due to negligence on the part of the taxpayer but without fraud, there must be added to the amount of the deficiency a penalty of 10% of the tax, but in no case less than $25."
Section 34. Coordination instruction. If House Bill No. 128 and [this act] are both passed and approved, then:
(1) [section 35] of House Bill No. 128, relating to the creation of class thirteen property, is void; and
(2) [section 27 of this act] must read as follows:
"NEW SECTION. Section 27. Class thirteen property -- description -- taxable percentage. (1) Except as provided in subsections (2)(a) through (2)(f), class thirteen property includes:
(b) electrical generation facilities owned or operated by an exempt wholesale generator or an entity certified as an exempt wholesale generator pursuant to section 32 of the Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a;
(c) noncentrally assessed electrical generation facilities owned or operated by any electrical energy producer; and
(d) allocations of centrally assessed telecommunications services companies.
(e) property owned by cooperative rural telephone associations and classified in class five; and
(f) property owned by organizations providing telecommunications services and classified in class five.
(4) Class thirteen property is taxed at 6% of its market value."
Section 35. Coordination instruction. If House Bill No. 128 and [this act] are both passed and approved, then:
(1) [section 44] of House Bill No. 128 is void; and
(2) [section 42] of House Bill No. 128 must read as follows:
"NEW SECTION. Section 42. Effective dates. (1) Except as provided in subsection (2), [this act] is effective January 1, 2000.
(2) For the purposes of promulgating administrative rules under [section 17], [section 17] and this section are effective on passage and approval."
Section 36. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
Section 37. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.
Section 38. Effective dates. (1) Except as provided in subsection (2), [this act] is effective January 1, 2000.
(2) For the purposes of promulgating administrative rules under [section 14], [section 14 and this section] are effective on passage and approval.
Section 39. Applicability. (1) [Sections 1 through 14, 26 through 29, and 31] apply to tax years beginning after December 31, 1999.
(2) [Sections 15 through 25 and 30] apply to fiscal years beginning after June 30, 2000.
Section 40. Termination. [Section 4(3)(e)] terminates January 1, 2003.
Latest Version of HB 174 (HB0174.ENR)
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