ID H0332

Exempts rate-regulated electric utility property from property taxation under section 63-602JJ, while subjecting utilities to a 1.2% gross utility electrical earnings tax instead.

Establishes new section 63-3502C requiring rate-regulated electric utilities to pay a 1.2% tax on gross utility electrical earnings, which replaces property taxes on operating property and counts toward taxing district budget limitations.

Creates allocation procedures in new section 63-3503C for the State Tax Commission to distribute utility earnings taxes to counties and taxing districts based on situs property location, transmission property mileage, and distribution property mileage.

Allocates replacement funds from a new Rate-Regulated Electric Utility Tax Replacement Fund (section 57-828) to offset property tax revenue losses for tax years 2024-2026 at 100%, 67%, and 33% of replacement amounts respectively, with no replacements after 2026.

Appropriates $9,000,000 from the General Fund to the Rate-Regulated Electric Utility Tax Replacement Fund and establishes January 1, 2024 as the effective date.