SCS/SB 803 - This act is implementing legislation for SJR 46 which authorizes the General Assembly to enact utility replacement taxes. Upon notice from the Public Service Commission to the Revisor of Statutes that statutes have been enacted and will become effective to establish retail customer choice of electricity supplier, one of the two portions of the act shall become effective on the following January first.

If a constitutional amendment has been approved to authorize replacement taxes, the act's replacement tax provisions would become effective and repeal existing gross receipts taxes and business license taxes on electricity, natural gas and propane and methane delivered by pipeline, 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.

If a constitutional amendment has not been approved to authorize replacement taxes, the act's 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 tax year the act becomes effective 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. The State Tax Commission shall use the same valuation method for all electric generating property subject to state assessment.
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