The text as introduced · 362 words
90R4796 EMS-F
By: Barry
H.B. No. 1064
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from taxes imposed on the gross receipts of
electricity sold to political subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 182.022(d), Tax Code, is amended to read
as follows:
(d) Notwithstanding any other provisions of this chapter, a
tax under this chapter may not be imposed on the gross receipts from
the sale of electricity to a political subdivision [ public school
district customer ].
SECTION 2. (a) As soon as practicable after the effective
date of this Act, the Public Utility Commission of Texas, for an
electric utility regulated under Chapter 36, Utilities Code, shall
provide for the adjustment of the electric utility's billing of a
political subdivision to reflect any decrease in the utility's tax
liability to this state if the decrease is attributable to the
exemption in Section 182.022(d), Tax Code, as amended by this Act.
An adjustment must be made effective at the same time as the
decrease of tax liability or as soon after that decrease occurs as
is reasonably practicable. The Public Utility Commission of Texas
is not required to provide for an adjustment if the commission
enters an order for the utility under Subchapter C or D, Chapter 36,
Utilities Code, that accounts for any decrease in the utility's tax
liability attributable to the exemption in Section 182.022(d), Tax
Code, as amended by this Act. An adjustment is not a rate case under
Subchapter C or D, Chapter 36, Utilities Code.
(b) As soon as practicable after the effective date of this
Act, a retail electric provider, as defined by Section 31.002,
Utilities Code, shall adjust the billing of a political subdivision
to reflect any decrease in the retail electric provider's tax
liability to this state if the decrease is attributable to the
exemption in Section 182.022(d), Tax Code, as amended by this Act.
An adjustment must be made effective at the same time as the
decrease of tax liability or as soon after that decrease occurs as
is reasonably practicable.
SECTION 3. This Act takes effect September 1, 2027.