This bill amends existing 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, including a requirement for property owners to file a form with the Department of Revenue Administration to help identify utility and non-utility properties.

The bill also includes a new subparagraph that exempts property used for generating electricity 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 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. The fiscal impact is expected to result in a decrease in revenue for the Education Trust Fund, estimated at $5.36 million in FY 2028 and $12.72 million in FY 2029 and subsequent years, due to the exemption of certain electric generating facilities from the state education tax.

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