This bill amends current laws regarding the taxation of electric generating facilities, specifically addressing their exemption from the utility property tax and the state education tax. It establishes that electric generating facilities exempt from the utility property tax and making payments in lieu of taxes (PILOT) to municipalities will not be liable for the state education tax until their PILOT agreement expires or until July 1, 2032, whichever comes first. Additionally, the bill introduces new provisions for the calculation and payment of utility property tax in future agreements, and it requires owners of exempted properties to file a form with the Department of Revenue Administration to help identify utility and non-utility property.

The bill also includes a new subparagraph that defines property used for generating electricity as exempt from the utility property tax, with specific exclusions for entities involved in the distribution or transmission of electricity. Furthermore, it clarifies that while properties subject to taxation under the utility property tax are exempt from the state education tax, they are still liable for local school, municipal, district, or county taxation. The act will take effect on July 1, 2027, and will apply to tax periods beginning on or after April 1, 2028. Overall, the bill aims to provide clarity and structure to the taxation of electric generating facilities while potentially impacting the revenue of the Education Trust Fund.

Statutes affected:
Introduced: 83-F:1, 83-F:5, 83-F:9
As Amended by the Senate: 72:74, 83-F:1, 83-F:9