TAX CODE
CHAPTER 182. MISCELLANEOUS GROSS RECEIPTS TAXES
SUBCHAPTER B. UTILITY COMPANIES
§ 182.021. DEFINITIONS. In this subchapter:
(1) "Utility company" means a person:
(A) who owns or operates a gas or water works, or
water plant used for local sale and distribution located within an
incorporated city or town in this state; or
(B) who owns or operates an electric light or
electric power works, or light plant used for local sale and
distribution located within an incorporated city or town in this
state, or who is a retail electric provider, as that term is defined
in Section 31.002, Utilities Code, that makes local sales within an
incorporated city or town in this state; provided, however, that a
person who owns an electric light or electric power or gas plant
used for distribution but who does not make retail sales to the
ultimate consumer within an incorporated city or town in this state
is not included in this definition.
(2) "Business" means the providing of gas, electric
light, electric power, or water.
(3), (4) Repealed by Acts 1991, 72nd Leg., 1st C.S., ch.
5, § 17.06, eff. Sept. 1, 1991.
Acts 1981, 67th Leg., p. 1715, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 5.02, eff.
Sept. 1, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 17.06,
eff. Sept. 1, 1991; Acts 1999, 76th Leg., ch. 405, § 55, eff.
Sept. 1, 1999.
§ 182.022. IMPOSITION AND RATE OF TAX. (a) A tax is
imposed on each utility company located in an incorporated city or
town having a population of more than 1,000, according to the last
federal census next preceding the filing of the report.
(b) The tax rates are:
(1) .581 percent of the gross receipts from business
done in an incorporated city or town having a population of more
than 1,000 but less than 2,500, according to the last federal census
next preceding the filing of the report;
(2) 1.07 percent of the gross receipts from business
done in an incorporated city or town having a population of 2,500 or
more but less than 10,000, according to the last federal census next
preceding the filing of the report; and
(3) 1.997 percent of the gross receipts from business
done in an incorporated city or town having a population of 10,000
or more, according to the last federal census next preceding the
filing of the report.
(c) to (e) Repealed by Acts 1991, 72nd Leg., 1st C.S., ch. 5,
§ 17.07, eff. Sept. 1, 1991.
Acts 1981, 67th Leg., p. 1715, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 5.03, eff.
Sept. 1, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 17.07,
eff. Sept. 1, 1991.
§ 182.023. PAYMENT OF TAX. Only one utility company
pays the tax on a commodity. If the commodity is produced by one
utility company and distributed by another, the distributor pays
the tax.
Acts 1981, 67th Leg., p. 1715, ch. 389, § 1, eff. Jan. 1, 1982.
§ 182.024. POLITICAL SUBDIVISIONS. No city or other
political subdivision of this state may impose an occupation tax or
charge of any sort on a utility company taxed under this subchapter.
Acts 1981, 67th Leg., p. 1715, ch. 389, § 1, eff. Jan. 1, 1982.
§ 182.025. CHARGES BY A CITY. (a) An incorporated city
or town may make a reasonable lawful charge for the use of a city
street, alley, or public way by a public utility in the course of
its business.
(b) The total charges, however designated or measured, may
not exceed two percent of the gross receipts of the public utility
for the sale of gas or water within the city.
(c) The total charges, however designated or measured,
relating to distribution service of an electric utility or
transmission and distribution utility within the city may not
exceed the amount or amounts prescribed by Section 33.008,
Utilities Code. The charges paid by an electric utility or
transmission and distribution utility under this subsection may be
only for distribution service.
(d) If a public utility taxed under this subchapter pays a
special tax, rental, contribution, or charge under a contract or
franchise executed before May 1, 1941, the city shall credit the
payment against the amount owed by the public utility on any charge
allowable under Subsection (a) of this section.
(e) In this section:
(1) "Distribution service" has the meaning assigned by
Section 33.008, Utilities Code.
(2) "Electric utility" has the meaning assigned by
Section 31.002, Utilities Code.
(3) "Public utility" means:
(A) a person who owns or operates a gas or water
works or water plant used for local sale and distribution located
within an incorporated city or town in this state; or
(B) an electric utility or transmission and
distribution utility providing distribution service within an
incorporated city or town in this state.
(4) "Transmission and distribution utility" has the
meaning assigned by Section 31.002, Utilities Code.
Acts 1981, 67th Leg., p. 1716, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1999, 76th Leg., ch. 405, § 56, eff. Jan. 1,
2002.
§ 182.026. SUBCHAPTER NOT APPLICABLE. (a) This
subchapter does not apply to a utility company owned and operated by
a city, town, county, water improvement district, or conservation
district.
(b) This subchapter does not:
(1) affect collection of ad valorem taxes; or
(2) impair or alter a provision of a contract,
agreement, or franchise made between a city and a public utility
company relating to a payment made to the city.
Acts 1981, 67th Leg., p. 1716, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 5.04, eff.
Sept. 1, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 17.08,
eff. Sept. 1, 1991.
§ 182.027. NO EXEMPTION. Notwithstanding anything to
the contrary in Chapter 161, Utilities Code, this subchapter
applies to a retail electric provider as defined in Section
31.002(17), Utilities Code, that is owned, operated, or controlled
by an electric cooperative.
Added by Acts 1999, 76th Leg., ch. 405, § 57, eff. Sept. 1, 1999.
SUBCHAPTER E. TAX COLLECTIONS AND BUSINESS PERMITS
§ 182.081. REPORTS. (a) A person required to pay a tax
under this chapter shall report to the comptroller on the last day
of January, April, July, and October of each year.
(b) A report must include a statement of the gross receipts
from business done, as defined in this chapter for each taxpayer,
during the preceding quarterly period.
Acts 1981, 67th Leg., p. 1717, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 1379, ch. 284, § 10, eff.
Sept. 1, 1983.
§ 182.082. TAX PAYMENTS: DUE DATE. Except as provided
in Section 182.083 of this code, the taxes imposed by this chapter
are due and payable to the comptroller on the last day of January,
April, July, and October of each year.
Acts 1981, 67th Leg., p. 1717, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 1379, ch. 284, § 10, eff.
Sept. 1, 1983; Acts 1997, 75th Leg., ch. 1423, § 19.117, eff.
Sept. 1, 1997.
§ 182.083. PAYMENT OF TAX IF BUSINESS BEGUN AFTER
BEGINNING OF QUARTER. (a) Except as provided in Subsection (b) of
this section, if a person taxed under this chapter begins business
on or after the first day of the quarter, then in lieu of the gross
receipts tax provided for in this chapter, the tax for that quarter
is $50, payable to the comptroller in advance.
(b) If a person that begins business on or after the first
day of the quarter is an incorporation, reincorporation, or
survivor of a merger of a person or persons that were previously
subject to a tax under this chapter, its report required under
Section 182.081 of this code must show the combined gross receipts
during the preceding quarterly period of the person or persons that
were incorporated, reincorporated, or merged to form the new
entity. The gross receipts tax provided for in this chapter must be
paid on the reported combined gross receipts required under this
subsection.
Acts 1981, 67th Leg., p. 1717, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1985, 69th Leg., ch. 31, § 2, eff. Aug. 26, 1985;
Acts 1997, 75th Leg., ch. 1423, § 19.118, eff. Sept. 1, 1997.
§ 182.084. ADDITIONAL REPORTS. The comptroller may
require a person required to report under this chapter to supply
additional or supplemental reports containing information
necessary to compute the tax due.
Acts 1981, 67th Leg., p. 1717, ch. 389, § 1, eff. Jan. 1, 1982.
§ 182.085. FORMS. The comptroller shall prepare forms
for use in making the reports required by this chapter.
Acts 1981, 67th Leg., p. 1718, ch. 389, § 1, eff. Jan. 1, 1982.
§ 182.086. PERMIT REQUIRED; FORM OF PERMIT. (a) Each
person taxed under this chapter must have a permit to transact
business.
(b) The comptroller shall issue the permit in a form
prescribed by the attorney general.
(c) A permit shows:
(1) the name of the person to whom it is issued;
(2) the business to be transacted; and
(3) that the holder has complied with this chapter.
(d) The permit must be publicly displayed at the principal
office of the person to whom it is issued.
Acts 1981, 67th Leg., p. 1718, ch. 389, § 1, eff. Jan. 1, 1982.
§ 182.087. APPLICATION AND ISSUANCE OF
PERMIT. (a) The comptroller shall prescribe the form of the
application for the permit to transact business.
(b) The application must show:
(1) to the satisfaction of the comptroller the facts
required under Section 182.086 of this code; and
(2) that the applicant has paid the taxes required by
this chapter or, if the applicant is the buyer of a going business,
that the seller has paid all taxes due or to become due under this
chapter.
(c) After determining that all taxes due under this chapter
have been paid, the comptroller shall issue the permit to transact
business.
(d) Repealed by Acts 1993, 73rd Leg., ch. 587, § 35, eff.
Oct. 1, 1993.
(e) Repealed by Acts 1983, 68th Leg., p. 4769, ch. 840, §
1, eff. Aug. 29, 1983.
Acts 1981, 67th Leg., p. 1718, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 4769, ch. 840, § 1, eff. Aug.
29, 1983; Acts 1993, 73rd Leg., ch. 587, § 35, eff. Oct. 1, 1993.
§ 182.088. SUSPENSION OF PERMIT. (a) If taxes due
under this chapter are not paid before the expiration of 30 days
after the due date, the comptroller shall mail a written notice to
the delinquent taxpayer at the last known address stating that:
(1) the tax is unpaid; and
(2) the comptroller will suspend the permit to
transact business if the tax is not paid within 10 days of the date
of the notice.
(b) The mailing of the notice is sufficient compliance with
this law.
(c) If the tax and accrued penalties are not paid before the
expiration of 15 days after the mailing of the notice, the
comptroller shall:
(1) Note on the records that the permit to transact
business of the delinquent taxpayer has been suspended, giving the
date of suspension;
(2) immediately certify the suspension to the attorney
general; and
(3) have published a notice of suspension of the
permit in a daily or weekly newspaper published in the county of the
delinquent taxpayer's business or, if there is no newspaper
published in that county, in a daily newspaper with statewide
circulation.
Acts 1981, 67th Leg., p. 1718, ch. 389, § 1, eff. Jan. 1, 1982.
SUBCHAPTER F. PENALTIES
§ 182.102. PENALTY FOR FAILURE TO FILE REPORT OR TO PAY
TAX. (a) A person who fails to file a report as required by this
chapter or who fails to pay a tax imposed by this chapter when due
forfeits five percent of the amount due as a penalty, and if the
person fails to file the report or pay the tax within 30 days after
the day on which the tax or report is due, the person forfeits an
additional five percent.
(b) The minimum penalty imposed by this section is $1.
Acts 1981, 67th Leg., p. 1719, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 452, ch. 93, § 5, eff. Sept.
1, 1983.
§ 182.103. SUITS. (a) The attorney general shall
bring suits to collect penalties under this chapter.
(b) The courts of Travis County have concurrent
jurisdiction of a violation under this chapter.
Acts 1981, 67th Leg., p. 1719, ch. 389, § 1, eff. Jan. 1, 1982.
§ 182.104. TRANSACTING BUSINESS WITHOUT A PERMIT:
PENALTY. (a) A person commits an offense if the person is
required by Section 182.086 of this code to have a permit and the
person transacts business without a valid permit.
(b) An offense under Subsection (a) of this section is
punishable by a fine of not less than $50 nor more than $500. Each
day on which a violation occurs is a separate offense.
Acts 1981, 67th Leg., p. 1719, ch. 389, § 1, eff. Jan. 1, 1982.
SUBCHAPTER G. NATURE AND ALLOCATION OF TAX
§ 182.121. NATURE OF TAX. A tax imposed by this chapter
is an occupation tax.
Acts 1981, 67th Leg., p. 1719, ch. 389, § 1, eff. Jan. 1, 1982.
§ 182.122. ALLOCATION OF TAX. Revenues collected under
this chapter are allocated:
(1) one-fourth to the foundation school fund; and
(2) three-fourths to the general revenue fund.
Acts 1981, 67th Leg., p. 1719, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1981, 67th Leg., p. 2778, ch. 752, § 9(h), eff.
Jan. 1, 1982; Acts 1984, 68th Leg., 2nd C.S., ch. 28, art. II, part
B, § 5, eff. Sept. 1, 1984.
