SECTION 3.511. Tax Rate, Due Dates, Payments, Exclusions, and Auditing

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Gross receipts--Includes receipts from charges for services, products, or commodities that are supplied or sold to an ultimate consumer. The tax assessment is not imposed on receipts derived from the sale of products or services that are purchased for resale.

(2) Rate--Every compensation, tariff, charge, fare, toll, rental, and classification, or any of them demanded, observed, charged, or collected whether directly or indirectly by any public utility for any service, product, or commodity included in Texas Civil Statutes, Article 1446c, §2.0011(1) or §3.002(9), and any rules, regulations, practices, or contracts affecting any compensation, tariff, charge, fare, toll, rental, or classification.

(b) Tax rate. Each public utility within the jurisdiction of the Public Utility Commission is assessed a tax equal to one-sixth of 1.0% of its gross receipts from rates charged to the ultimate customers.

(c) Exclusions. Charges that represent taxes or assessments levied on a utility taxpayer and that are passed on to its customers, remain a part of the rate charged by the utility, and are receipts subject to the tax. However, taxes that are levied on the consumers and collected by utilities as agents for the taxing authority, are not receipts, and are not subject to the tax.

(d) Due date. The assessment imposed by Texas Civil Statutes, Article 1446c, §1.351, is due and payable, except as provided in subsection (f) of this section, on August 15 of each year. The payment and the report on the form prescribed by the Comptroller of Public Accounts will be considered timely if received by the comptroller or postmarked no later than midnight on August 15, except as provided in subsection (f)(1)-(3) of this section. The report due on August 15 of each year is for the reporting period of July 1 of the prior year through June 30 of the current year.

(e) Quarterly filer. A taxpayer subject to the assessment may elect to make payments of the assessment on a quarterly basis, except as provided in subsection (f) of this section. An election to do so must be in writing and be received by the comptroller at least 30 days prior to August 15. If an election is made, the assessment for the applicable quarters is due and payable as follows:

Attached Graphic

(f) Prepayment dates. A taxpayer subject to the assessment is required to prepay the assessment due for the years 1995, 1996, 1997, and 1998. The prepayments will be based on the taxpayer's estimate of its gross receipts for the next year. After the August 15, 1994, report, all taxpayers will be required to file annual reports. This subsection expires September 1, 1998. The required estimated assessment payments due for August 15, 1995, 1996, 1997, and 1998 reports are payable as follows:

(1) 1995--50% by August 15, 1994, and 50% by February 15, 1995;

(2) 1996--50% by August 15, 1995, and 50% by February 15, 1996;

(3) 1997--50% by August 15, 1996, and 50% by February 15, 1997;

(4) 1998--50% by August 15, 1997, and the remainder by August 15, 1998.

(g) Prepayment calculation. The required estimated assessment payments will be determined in the following manner:

(1) the estimated assessments due for the years 1995, 1996, 1997, and 1998 are equal to the assessment due for the previous annual report or previous four quarterly reports, whichever may apply, or the actual assessment due; and

(2) any assessment amounts underpaid on assessments due on August 15, 1995, August 15, 1996, or August 15, 1997, must be paid by those respective dates. Any assessment amounts overpaid shall be credited against the following assessments.

(h) Penalties and interest. Penalties and interest may apply to the assessment and to the prepayment.

(1) If the amount paid pursuant to subsections (f) and (g) of this section is less than the required estimated assessment amount, a penalty of 10% will accrue on the difference between the required estimated assessment amount and the amount actually remitted.

(2) If a required estimated assessment payment is not timely, or no required estimated assessment payment is made, a 10% penalty will accrue on the required estimated assessment amount determined pursuant to subsections (f) and (g) of this section.

(3) A penalty of 10% will accrue on the additional assessment due, pursuant to subsection (g)(2) of this section, if not paid when the assessment is due.

(4) All payments and reports postmarked, or received if not mailed, after the due date are late, and a penalty of 10% of the assessment is due. Amounts delinquent for more than 30 days shall draw interest at the rate of 12% per year on the assessment and penalty due.

(i) Records. All taxpayers subject to the tax assessment imposed by Texas Civil Statutes, Article 1446c, must keep adequate records in order to accurately determine the amount of tax due and payable for a period of at least four years, and make the records available to the comptroller or his designated representative upon request.

(j) Audits. Taxpayer accounts may be audited by authorized representatives of the Comptroller of Public Accounts at any time during regular business hours of the taxpayer. The audit will be performed by examining any records, books or other information which are maintained by the taxpayer. If the records are inadequate to accurately reflect the gross receipts subject to the tax assessment, the auditor will base the audit report on the best information available.

(k) Assessment limitation. The Comptroller of Public Accounts may assess any unpaid tax assessment within four years after the date the assessment was due and payable.

Source Note: The provisions of this §3.511 adopted to be effective December 5, 1996, 21 TexReg 11510