House File 671 H-1667 Amend House File 671 as follows: 1 1. Page 7, after line 26 by inserting: 2 < DIVISION ___ 3 MUNICIPAL UTILITY REPLACEMENT TAX APPLICATION 4 Sec. ___. MUNICIPAL UTILITIES —— REPLACEMENT TAX —— 5 IMPLEMENTATION STUDY. 6 1. The department of revenue shall conduct an 7 evaluation and analysis regarding applying the 8 replacement tax on electricity and natural gas 9 providers established in chapter 437A to municipal 10 utilities not currently subject to the tax, in an 11 effort to address inequities in the application of the 12 foundation property tax imposed pursuant to section 13 257.3. 14 2. The evaluation shall be conducted with the 15 assistance of the utility replacement tax task force 16 and shall include but not be limited to determination 17 of the following: 18 a. Equitable delivery rates for municipal utilities 19 not currently subject to the tax. 20 b. Phased-in implementation of tax imposition 21 subject to the following specified percentages of full 22 replacement tax liability: 23 (1) For the tax year beginning January 1, 2011, 24 zero percent. 25 (2) For the tax year beginning January 1, 2012, 26 fourteen percent. 27 (3) For the tax year beginning January 1, 2013, 28 twenty-eight percent. 29 (4) For the tax year beginning January 1, 2014, 30 forty-two percent. 31 (5) For the tax year beginning January 1, 2015, 32 sixty-four percent. 33 (6) For the tax year beginning January 1, 2016, 34 seventy-eight percent. 35 (7) For the tax year beginning January 1, 2017, 36 ninety-two percent. 37 (8) For the tax year beginning January 1, 2018, and 38 succeeding tax years, one hundred percent. 39 3. The department shall submit proposed legislation 40 during the 2012 legislative session reflecting the 41 results of the evaluation. > 42 2. Title page, line 3, after < limitations, > by 43 inserting < providing for an evaluation of applying 44 the replacement tax on electricity and natural gas 45 providers to municipal utilities, > 46 ______________________________ WATTS of Dallas -1- HF671.2674 (4) 84 rn/sc 1/ 1 #1. #2.