| 1 | 1 | | 89R6170 CS-F |
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| 2 | 2 | | By: Barry H.B. No. 2962 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an exemption from taxes imposed on the gross receipts of |
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| 10 | 10 | | electricity sold to political subdivisions. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 182.022(d), Tax Code, is amended to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (d) Notwithstanding any other provisions of this chapter, a |
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| 15 | 15 | | tax under this chapter may not be imposed on the gross receipts from |
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| 16 | 16 | | the sale of electricity to a political subdivision [public school |
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| 17 | 17 | | district customer]. |
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| 18 | 18 | | SECTION 2. (a) As soon as practicable after the effective |
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| 19 | 19 | | date of this Act, the Public Utility Commission of Texas, for an |
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| 20 | 20 | | electric utility regulated under Chapter 36, Utilities Code, shall |
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| 21 | 21 | | provide for the adjustment of the electric utility's billing of a |
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| 22 | 22 | | political subdivision to reflect any decrease in the utility's tax |
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| 23 | 23 | | liability to this state if the decrease is attributable to the |
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| 24 | 24 | | exemption in Section 182.022(d), Tax Code, as amended by this Act. |
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| 25 | 25 | | An adjustment must be made effective at the same time as the |
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| 26 | 26 | | decrease of tax liability or as soon after that decrease occurs as |
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| 27 | 27 | | is reasonably practicable. The Public Utility Commission of Texas |
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| 28 | 28 | | is not required to provide for an adjustment if the commission |
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| 29 | 29 | | enters an order for the utility under Subchapter C or D, Chapter 36, |
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| 30 | 30 | | Utilities Code, that accounts for any decrease in the utility's tax |
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| 31 | 31 | | liability attributable to the exemption in Section 182.022(d), Tax |
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| 32 | 32 | | Code, as amended by this Act. An adjustment is not a rate case under |
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| 33 | 33 | | Subchapter C or D, Chapter 36, Utilities Code. |
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| 34 | 34 | | (b) As soon as practicable after the effective date of this |
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| 35 | 35 | | Act, a retail electric provider, as defined by Section 31.002, |
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| 36 | 36 | | Utilities Code, shall adjust the billing of a political subdivision |
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| 37 | 37 | | to reflect any decrease in the retail electric provider's tax |
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| 38 | 38 | | liability to this state if the decrease is attributable to the |
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| 39 | 39 | | exemption in Section 182.022(d), Tax Code, as amended by this Act. |
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| 40 | 40 | | An adjustment must be made effective at the same time as the |
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| 41 | 41 | | decrease of tax liability or as soon after that decrease occurs as |
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| 42 | 42 | | is reasonably practicable. |
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| 43 | 43 | | SECTION 3. This Act takes effect September 1, 2025. |
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