WORKING DRAFT

HOUSE BILL NO.

Electrical generation tax.

Sponsored by: Joint Revenue Interim Committee

A BILL

for

AN ACT relating to taxation and revenue; imposing an excise tax upon the production of electricity as specified; providing a rate; providing rulemaking authority; providing a penalty; reducing the sales tax paid on utilities; and providing for an effective date.

Section 1. W.S. 39-22-101 through 39-22-111 are created to read:

CHAPTER 22

TAX UPON PRODUCTION OF ELECTRICITY

39-22-101. Definitions.

There are no specific applicable provisions for definitions for this chapter.

39-22-102. Administration.

The department of revenue shall enforce the provisions of this section. The department shall promulgate rules and regulations necessary for the implementation and enforcement of this section.

39-22-103. Imposition.

There is levied an excise tax upon the privilege of producing electricity in this state. The tax shall be imposed upon the production of any electricity generated for sale or trade.

39-22-104. Taxation rate.

The tax rate shall be one-half (1/2) mill upon each kilowatt hour, or portion thereof, produced in this state.

39-22-105. Exemptions.

No tax shall be imposed upon electricity which is produced for the personal consumption of the producer.

39-22-106. Licensing; permits.

There are no specific applicable provisions for licenses and permits for this chapter.

39-22-107. Compliance; collection procedures.

(a) Returns and reports. Any person producing electricity in this state shall report the amount of kilowatt hours produced on or before February 1 of the year immediately following the year in which the electricity was produced.

(b) Payment. Any person owing a tax under this chapter shall pay the tax once each year on or before February 1 of the year immediately following the year in which the electricity was produced. The tax shall be collected by the department of revenue.

39-22-108. Enforcement.

(a) Audits. There are no specific applicable provisions for audits for this chapter.

(b) Interest. Interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year plus four percent (4%) shall be added to all delinquent taxes under this chapter. To determine the average prime interest rate, the state treasurer shall average the prime interest rate for at least seventy-five percent (75%) of the thirty (30) largest banks in the United States. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which taxes first became delinquent. In no instance shall the delinquent tax rate be less than twelve percent (12%) nor greater than eighteen percent (18%).

(i) If any person fails to make or file a return and remit the tax as required by this chapter the department shall impose a penalty of five percent (5%) of the taxes due for each thirty (30) day period, or fraction thereof, elapsing between the due date of the return and the date filed, unless the person for good cause obtains from the department an extension of time for filing prior to the due date for filing. In no event shall the total penalty imposed by this subsection exceed twenty-five percent (25%) of the tax due. The department, for good cause, may waive a penalty imposed for failure to file a return for any one (1) month in a calendar year, provided that:

(A) The return was filed within five (5) business days following the due date, including an approved extension period; and

(B) The taxpayer requests the waiver in writing within fifteen (15) days after the return was filed, setting forth the reasons for the late filing.

(ii) If any part of a tax deficiency is due to negligence or intentional disregard of rules and regulations there shall be added a penalty of five percent (5%) of the amount of the deficiency plus interest as provided by subsection (b) of this section. The taxes, penalty and interest shall be paid by the taxpayer within ten (10) days after receipt of notice and demand by the department;

(iii) Taxes due together with interest, penalties and costs shall be collectible by the department by appropriate judicial proceedings;

(iv) The department may credit or waive penalties imposed by this section as part of a settlement or for any other good cause.

(d) Liens. Any delinquent tax is a lien upon the property of any owner from and after the time the tax is due until the tax is paid. The tax lien shall have preference over all liens except any valid mortgage or other liens of record filed or recorded prior to the date the tax became due.

(e) Tax sales. There are no specific applicable provisions for tax sales for this chapter.

39-22-109. Taxpayer remedies.

There are no specific applicable provisions for taxpayer remedies for this chapter.

39-22-110. Statute of limitations.

There are no specific applicable provisions for a statute of limitations for this chapter.

39-22-111. Distribution.

The proceeds from the tax imposed by this chapter shall be deposited in the general fund.

Section 2. W.S. 39-15-104 by creating a new subsection (f) is amended to read:

39-15-104. Taxation rate.

(f) Notwithstanding the other provisions of this section, the tax rate for the sales price paid to public utilities pursuant to W.S. 39-15-103(a)(i)(E) shall be two percent (2%).

Section 3.

(a) Section 2 of this act is effective July 1, 2002.

(b) The remainder of this act is effective July 1, 2003.

(END)