Texas HB685 prohibits municipalities from setting higher water or sewer rates for entities with tax exemptions.

Texas HB685 amends the Local Government Code to add a prohibition on municipalities establishing higher rates for water or sewer services for entities that qualify for sales tax or ad valorem tax exemptions. The bill ensures that entities with such tax exemptions do not face higher utility rates than those without comparable exemptions. This Act takes effect September 1, 2025.

Texas HB685 prohibits municipalities from setting higher water or sewer rates for entities with tax exemptions.

Texas HB685 amends the Local Government Code to add a prohibition on municipalities establishing higher rates for water or sewer services for entities that qualify for sales tax or ad valorem tax exemptions. The bill ensures that entities with such tax exemptions do not face higher utility rates than those without comparable exemptions. This Act takes effect September 1, 2025.