HB2962 - Relating to an exemption from taxes imposed on the gross receipts of electricity sold to political subdivisions.

  89R6170 CS-F     By: Barry H.B. No. 2962       A BILL TO BE ENTITLED   AN ACT   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   as follows:          (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   district customer ].          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   is reasonably practicable.          SECTION 3.  This Act takes effect September 1, 2025.