Amend House File 671 as follows:
   1.  Page 7, after line 26 by inserting: 

<DIVISION ___

MUNICIPAL UTILITY REPLACEMENT TAX APPLICATION
   Sec. ___.  MUNICIPAL UTILITIES —— REPLACEMENT TAX —— IMPLEMENTATION STUDY.
   1.  The department of revenue shall conduct an evaluation and analysis regarding applying the replacement tax on electricity and natural gas providers established in chapter 437A to municipal utilities not currently subject to the tax, in an effort to address inequities in the application of the foundation property tax imposed pursuant to section 257.3.
   2.  The evaluation shall be conducted with the assistance of the utility replacement tax task force and shall include but not be limited to determination of the following:
   a.  Equitable delivery rates for municipal utilities not currently subject to the tax.
   b.  Phased-in implementation of tax imposition subject to the following specified percentages of full replacement tax liability:
   (1)  For the tax year beginning January 1, 2011, zero percent.
   (2)  For the tax year beginning January 1, 2012, fourteen percent.
   (3)  For the tax year beginning January 1, 2013, twenty-eight percent.
   (4)  For the tax year beginning January 1, 2014, forty-two percent.
   (5)  For the tax year beginning January 1, 2015, sixty-four percent.
   (6)  For the tax year beginning January 1, 2016, seventy-eight percent.
   (7)  For the tax year beginning January 1, 2017, ninety-two percent.
   (8)  For the tax year beginning January 1, 2018, and succeeding tax years, one hundred percent.
   3.  The department shall submit proposed legislation during the 2012 legislative session reflecting the results of the evaluation.>
   2.  Title page, line 3, after<limitations,> by inserting <providing for an evaluation of applying the replacement tax on electricity and natural gas providers to municipal utilities,>

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WATTS of Dallas