This bill proposes an exemption from the state education property tax for certain electric generating facilities that are already exempt from the utility property tax and are making payments in lieu of taxes (PILOT) to a municipality. Specifically, if a PILOT agreement was in effect as of January 1, 2025, the facility would not be liable for the state education tax until the PILOT agreement expires or until January 1, 2030, whichever comes first. After this period, the state education tax may be included in a new PILOT agreement or paid in addition to the PILOT if the agreement has not expired or been renegotiated. The bill also includes a new requirement for owners of property exempted from the definition of utility property to file a form annually, identifying utility and non-utility property and maintaining an inventory of assets subject to the utility property tax.

Additionally, the bill directs that 50 percent of the annual communications services tax revenues be transferred to the education trust fund. The fiscal impact of the bill on the state is indeterminable, but it is expected to decrease Education Trust Fund revenue by an indeterminable amount beginning in FY 2025. The Department of Revenue Administration would need to update tax return forms and electronic management systems to reflect these changes, but this is not anticipated to result in additional administrative costs that cannot be absorbed within the Department's operating budget. The bill is set to take effect on January 1, 2025.

Statutes affected:
Introduced: 83-F:1, 83-F:5, 83-F:9, 198:39
As Amended by the Senate: 83-F:1, 83-F:5, 83-F:9