Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 1 - RAILROAD COMMISSION OF TEXAS › Chapter 7 - GAS SERVICES › Subchapter C - RECORDS AND REPORTS; TARIFFS; GAS UTILITY TAX › Section 7.351 - Gas Utility Pipeline Tax

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Tax imposed. Every gas utility as described in Texas Utilities Code, §
										RSA
				  122.001<subdiv>(1)</subdiv>,
				  shall report and pay a gas utility tax as required by Texas Utilities Code,
				  Chapter 122. The gas utility tax is imposed on the gross income received from
				  all activity performed by the gas utility in Texas pursuant to Texas Utilities
				  Code, §
										RSA
				  121.001<subdiv>(a)(2)</subdiv>.
				  The rate of the tax is one-half of 1.0% of the gross income subject to the
				  tax.
(b) Tax payment. Each gas
				  utility subject to this tax shall report and pay the tax imposed to the
				  Commission by February 20, May 20, August 20, and November 20 of a year for the
				  preceding calendar quarter. The gas utility tax report shall be of a form and
				  content as established by the Commission and shall be properly completed. . The
				  Commission shall consider a gas utility tax report and payment timely filed if
				  it is received by Gas Services on or before the applicable date or is sent to
				  Gas Services by first-class United States mail in an envelope or wrapper
				  properly addressed and stamped and postmarked before the deadline and received
				  not more than 10 days later. A legible postmark affixed by the United States
				  Postal Service shall be prima facie evidence of the date of mailing.
(c) Gross income and gross receipts.
(1) Gross income shall be equal to the total
				  gross receipts from any activity described in Texas Utilities Code, §
											RSA
				  121.001<subdiv>(a)(2)</subdiv>,
				  other than an activity excluded by Texas Utilities Code Chapter 121 from the
				  activities that make a person a gas utility for purposes of that chapter, less
				  a deduction of the costs paid to another person by the gas utility for
				  purchasing, treating, or storing natural gas or for gathering or transporting
				  natural gas to the facilities of the gas utility. Treating shall be any process
				  designed to make gas of pipeline quality.
(2) Gross receipts shall be equal to the
				  total revenue received from the sale and/or transportation of gas. Revenue from
				  residential sales, commercial and industrial sales, other sales to public
				  authorities, sales for resale, interdepartmental sales, revenues from
				  transportation of gas of others, revenues from storing gas of others, other gas
				  revenues as they relate to natural gas sales, transportation, and/or treating
				  revenues related to transportation (corresponding to Account Numbers 480, 481,
				  482, 483, 484, 489.1 through 489.4, and 495 of the Federal Energy Regulatory
				  Commission (FERC) uniform system of accounts), as well as any other applicable
				  revenue items determined by the Commission, shall be subject to the gas utility
				  tax. A distribution gas utility performing transportation for a fee (Account
				  Number 489.3) and/or making sales for resale (Account Number 483) shall be
				  subject to tax on those receipts.