Exempts gross receipts from electricity sales to political subdivisions from state taxes.

This bill amends the Texas Tax Code to exempt gross receipts from the sale of electricity to political subdivisions from state taxes. It requires the Public Utility Commission of Texas to adjust the billing of political subdivisions to reflect any decrease in tax liability attributable to this exemption. The adjustment must occur as soon as practicable after the effective date of the Act, which is September 1, 2025. The adjustment is not considered a rate case under the Utilities Code.

Exempts gross receipts from electricity sales to political subdivisions from state taxes.

This bill amends the Texas Tax Code to exempt gross receipts from the sale of electricity to political subdivisions from state taxes. It requires the Public Utility Commission of Texas to adjust the billing of political subdivisions to reflect any decrease in tax liability attributable to this exemption. The adjustment must occur as soon as practicable after the effective date of the Act, which is September 1, 2025. The adjustment is not considered a rate case under the Utilities Code.