HB 702 Summary

• Repeals Section 63-205B regarding assessment of operating property of rate-regulated electric utility companies and establishes new taxation framework under Section 63-3502B(3).

• Implements kilowatt hour tax on rate-regulated electric utility companies at tiered rates: $0.00131 per kWh for sales under 5 billion hours, $0.00116 for 5-10 billion hours, and $0.00101 for 10 billion hours or greater.

• Creates new "situs property" category assessed by county assessors for rate-regulated electric utility company property that cannot be apportioned by transmission/distribution line miles or certain thermal generation equipment located near cities.

• Establishes new Section 63-3503C requiring rate-regulated electric utility companies to file operator's statements with kilowatt hours sold, with state tax commission calculating tax liability and apportioning revenue to counties and eligible taxing districts by July.

• Declares emergency and provides retroactive application to January 1, 2024.