Texas SB2701 prohibits municipalities from setting higher water or sewer rates for entities with tax exemptions.

Texas SB2701 amends the Local Government Code to add a prohibition on rate discrimination for water or sewer services. Specifically, it prevents municipalities from establishing rates for entities that qualify for a sales tax or ad valorem tax exemption that are higher than rates for entities receiving comparable utility service. This change aims to ensure fair utility rates across different entities. The act takes effect on September 1, 2025.

Texas SB2701 prohibits municipalities from setting higher water or sewer rates for entities with tax exemptions.

Texas SB2701 amends the Local Government Code to add a prohibition on rate discrimination for water or sewer services. Specifically, it prevents municipalities from establishing rates for entities that qualify for a sales tax or ad valorem tax exemption that are higher than rates for entities receiving comparable utility service. This change aims to ensure fair utility rates across different entities. The act takes effect on September 1, 2025.