Bill > HB485

This bill modifies the Health and Safety Code to give emergency services districts (local government entities responsible for providing emergency services like fire and medical response) new authority regarding sales tax on residential gas and electricity. Specifically, the bill allows the board of an emergency services district to vote to remove the existing tax exemption for gas and electricity sold for residential use, effectively enabling these districts to impose sales tax on residential utility bills. The board can also later reinstate the exemption if desired. Any decision to repeal or reinstate the exemption must be communicated to the state comptroller, and the change will take effect on the first day of the calendar quarter following a complete quarter after the comptroller receives notice. The bill will become law immediately if it receives a two-thirds vote in the Texas legislature, or otherwise will take effect on September 1, 2025. This legislation provides emergency services districts with a new potential revenue mechanism to fund their operations by allowing them to collect sales tax on residential utility services.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB485