CHAPTER 122. GAS UTILITY PIPELINE TAX

UTILITIES CODE

TITLE 3. GAS REGULATION

SUBTITLE B. REGULATION OF TRANSPORTATION AND USE

CHAPTER 122. GAS UTILITY PIPELINE TAX

SUBCHAPTER A. DEFINITIONS

Sec. 122.001. DEFINITIONS. In this chapter:

(1) "Gas utility" has the meaning assigned by Section

121.001(a)(2) and includes a person without regard to whether the

person acquired a part of the right-of-way for the pipeline by

eminent domain.

(2) "Gross income" includes all gross receipts the gas utility

received from activities described by Section 121.001(a)(2) that

are performed in this state, other than an activity excluded by

Chapter 121 from the activities that make a person a gas utility

for purposes of that chapter, and excludes the amount of the

deduction allowed by Section 122.052.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER B. TAX IMPOSED

Sec. 122.051. TAX IMPOSED; RATE. (a) A tax is imposed on each

gas utility.

(b) The gas utility tax is imposed at the rate of one-half of

one percent of the gross income of the gas utility.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.052. DEDUCTION OF CERTAIN COSTS. A gas utility is

entitled to deduct from the utility's gross receipts the amount

of the cost paid to another person by the utility for purchasing,

treating, or storing natural gas or for gathering or transporting

natural gas to the utility's facilities.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER C. PAYMENTS, REPORTS, AND RECORDS

Sec. 122.101. TAX PAYMENT. (a) A gas utility on whom a tax is

imposed by this chapter during a calendar quarter shall pay the

tax to the railroad commission.

(b) A gas utility shall make the tax payment payable to the

comptroller.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.102. REPORT. (a) A gas utility on whom a tax is

imposed by this chapter during a calendar quarter shall include

with the tax payment a report to the railroad commission that

includes a statement of:

(1) all activity subject to the tax during the period covered by

the report; and

(2) the gross income from that activity.

(b) The president, secretary, or general manager of a gas

utility that is a corporation or an owner of a gas utility that

is not a corporation must verify the truth and accuracy of the

report.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.103. PAYMENT AND REPORT DEADLINE. A tax payment and

report under this chapter for a calendar quarter are due on or

before the 20th day of the second month of the succeeding

quarter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.104. RECORDS. A person on whom a tax is imposed by

this chapter shall maintain until the fourth anniversary of the

date the tax report and payment for a calendar quarter are due

records sufficient to:

(1) document the person's tax report; and

(2) establish the amount of the tax imposed.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER D. ADMINISTRATION

Sec. 122.151. ADMINISTRATION BY RAILROAD COMMISSION. The

railroad commission:

(1) shall administer and collect the taxes imposed by this

chapter; and

(2) may adopt rules necessary to administer this chapter and to

collect and enforce the taxes.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.152. EXAMINATION OF RECORDS AND PERSON DOING BUSINESS

IN THIS STATE. To enforce this chapter, the railroad commission

may examine:

(1) a book, record, or paper of a person permitted to do

business in this state, including an agent of the person, at an

office of the person or agent in the United States; and

(2) an officer or employee of a person described by Subdivision

(1) under oath.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER E. PENALTIES AND INTEREST

Sec. 122.201. PENALTY FOR FAILURE TO REPORT TAX. A person who

is required to report a tax imposed by this chapter and fails to

report as required by Sections 122.102 and 122.103 shall pay:

(1) a penalty of five percent of the amount of the tax due with

the report; and

(2) if the report is not made before the 31st day after the date

the report is initially required to be made, an additional

penalty of five percent of the amount of the tax due with the

report.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.202. PENALTY FOR FAILURE TO PAY TAX. A person who is

required to pay a tax imposed by this chapter and fails to pay

the tax as required by Sections 122.101 and 122.103 shall pay:

(1) a penalty of five percent of the amount of the tax due and

unpaid; and

(2) if the tax is not paid before the 31st day after the date

the tax payment is initially required to be made, an additional

penalty of five percent of the amount of the tax due and unpaid.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.203. PENALTY FOR FAILURE TO REPORT AND PAY TAX. If a

person fails to make the report and to pay the tax for a

reporting period, only the penalty and additional penalty under

Section 122.201, as applicable, for failure to make the report is

imposed.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.204. MINIMUM PENALTY. If the amount of a penalty or

additional penalty computed as provided by this subchapter is

less than $5, the amount of the penalty or additional penalty is

$5.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 122.205. INTEREST. A tax imposed by this chapter that

becomes delinquent draws interest at the rate of 12 percent a

year beginning on the 60th day after the date the tax becomes

delinquent and continues to draw interest until the date the tax

is paid.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.