Bill > HB2962

This bill expands a tax exemption in the Texas Tax Code by modifying the existing provision to remove the specific reference to "public school district customer" and replace it with the broader term "political subdivision". This means that gross receipts from electricity sales to any political subdivision (which could include cities, counties, special districts, and other local government entities) will be exempt from taxation, rather than just public school districts. The bill also requires both electric utilities regulated by the Public Utility Commission and retail electric providers to adjust their billing to political subdivisions to reflect any decrease in tax liability resulting from this exemption. These billing adjustments must be made as soon as practicable after the tax liability decrease occurs, though the Public Utility Commission is not required to make an adjustment if it has already accounted for the tax liability decrease through another order. The bill is set to take effect on September 1, 2025, providing ample time for utilities and providers to prepare for the implementation of this tax exemption.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2962