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SENATE BILL NO. 83
INTRODUCED BY HALLIGAN M
BY REQUEST OF THE REVENUE OVERSIGHT COMMITTEE
A BILL FOR AN ACT ENTITLED: "AN ACT IMPOSING A WHOLESALE ENERGY TRANSACTION TAX ON ELECTRIC ENERGY INTRODUCED ON STATE TRANSMISSION LINES AT A RATE OF 0.03 CENT PER KILOWATT HOUR OF ELECTRICITY AT THE POINT THAT THE ELECTRICITY IS INTRODUCED ONTO TRANSMISSION LINES IN THE STATE; PROVIDING THAT THE PROCEEDS OF THE TAX BE DEPOSITED IN AN ACCOUNT USED TO PARTIALLY REPLACE THE DECREASE IN ELECTRICAL GENERATION PROPERTY TAXES; SUBMITTING THE TAX TO THE ELECTORATE; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Wholesale energy transaction tax. (1) A wholesale energy transaction tax is imposed upon each person transmitting electric power in this state. The tax is imposed at a rate of 0.03 cent per kilowatt hour of electricity transmitted into or out of the state at the point that the electricity is introduced onto transmission lines in the state of Montana that are not owned by an entity of the United States government.
(2) The taxpayer is the owner of the electricity transmitted within the state, but the taxes must be precollected by the owner of the electrical transmission facility in which the electric power is introduced onto transmission lines, as provided in subsection (1). The facility owner shall itemize the amount of taxes payable by the taxpayer. Refunds of tax overpayment must be made to the taxpayer, and deficiency assessments are the responsibility of the taxpayer and not the facility owner.
(3) The precollected tax is payable on a quarterly basis, and the amount due, less a 3% administrative fee for its administration of the tax, must be remitted by the facility owner to the department within 30 days after the end of each calendar quarter.
(4) Electricity that is transmitted through the state and electricity that is owned by a governmental agency are not subject to the tax imposed by this section. A taxpayer or governmental agency may apply to the department for refunds of taxes paid on electricity transmitted through the state or on government-owned electricity. The department shall, by rule, establish the forms and procedure for administering the refund.
(5) The proceeds of the tax, less any amount required for refunds, must be deposited in an account provided for in [section 11] of [LC 381] for class nine property tax replacement funds.
NEW SECTION. Section 2. Submission of tax increase to electorate. This act shall be submitted to the qualified electors of Montana at the tax election to be held in 1999 by printing on the ballot the full title of this act and the following:
SHALL A NEW TAX, DESCRIBED AS FOLLOWS, BE IMPOSED?
 FOR imposing a wholesale energy transaction tax on electric energy introduced on state transmission lines to partially fund the decrease in electrical generator property taxes.
 AGAINST imposing a wholesale energy transaction tax on electric energy introduced on state transmission lines to partially fund the decrease in electrical generator property taxes.
NEW SECTION. Section 3. Codification instruction. Section 1 is intended to be codified as an integral part of Title 15, and the provisions of Title 15 apply to section 1.
NEW SECTION. Section 4. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then this act is void.
NEW SECTION. Section 5. Effective date. This act is effective January 1, 2000.
NEW SECTION. Section 6. Applicability. If approved by the electorate, this act applies to tax years beginning after December 31, 1999.
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Latest Version of SB 83 (SB0083.01)
Processed for the Web on December 18, 1998 (2:10PM)
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