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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from taxes imposed on the gross receipts of |
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electricity sold to political subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 182.022(d), Tax Code, is amended to read |
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as follows: |
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(d) Notwithstanding any other provisions of this chapter, a |
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tax under this chapter may not be imposed on the gross receipts from |
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the sale of electricity to a political subdivision [public school |
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district customer]. |
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SECTION 2. (a) As soon as practicable after the effective |
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date of this Act, the Public Utility Commission of Texas, for an |
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electric utility regulated under Chapter 36, Utilities Code, shall |
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provide for the adjustment of the electric utility's billing of a |
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political subdivision to reflect any decrease in the utility's tax |
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liability to this state if the decrease is attributable to the |
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exemption in Section 182.022(d), Tax Code, as amended by this Act. |
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An adjustment must be made effective at the same time as the |
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decrease of tax liability or as soon after that decrease occurs as |
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is reasonably practicable. The Public Utility Commission of Texas |
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is not required to provide for an adjustment if the commission |
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enters an order for the utility under Subchapter C or D, Chapter 36, |
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Utilities Code, that accounts for any decrease in the utility's tax |
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liability attributable to the exemption in Section 182.022(d), Tax |
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Code, as amended by this Act. An adjustment is not a rate case under |
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Subchapter C or D, Chapter 36, Utilities Code. |
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(b) As soon as practicable after the effective date of this |
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Act, a retail electric provider, as defined by Section 31.002, |
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Utilities Code, shall adjust the billing of a political subdivision |
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to reflect any decrease in the retail electric provider's tax |
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liability to this state if the decrease is attributable to the |
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exemption in Section 182.022(d), Tax Code, as amended by this Act. |
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An adjustment must be made effective at the same time as the |
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decrease of tax liability or as soon after that decrease occurs as |
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is reasonably practicable. |
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SECTION 3. This Act takes effect September 1, 2025. |