HB 2962
AN ACT relating to an exemption from taxes imposed on the gross receipts of
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Exempts political subdivisions from paying taxes on gross receipts from electricity sales, effectively reducing electricity costs for local government entities like cities, counties, and school districts. Electric utilities and retail electric providers are required to adjust billing for political subdivisions to reflect their decreased tax liability, ensuring that the financial benefit is passed directly to these government entities. The tax exemption will take effect on September 1, 2025, potentially providing significant cost savings for local government operations and potentially reducing taxpayer expenses.
Subject Areas
Bill Text
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 (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 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 SECTION 3. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to an exemption from taxes imposed on the gross receipts of
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