UTILITIES CODE
CHAPTER 122. GAS UTILITY PIPELINE TAX
SUBCHAPTER A. DEFINITIONS
§ 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, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. TAX IMPOSED
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. PAYMENTS, REPORTS, AND RECORDS
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
SUBCHAPTER D. ADMINISTRATION
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
SUBCHAPTER E. PENALTIES AND INTEREST
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
