New Texas Tax Exemption Could Reduce Electricity Costs for School Districts
In case you missed it, Texas public school districts will be exempt from the miscellaneous gross receipts tax (GRT) on electric sales as of Jan. 1, 2024. Tex. Tax Code 182.022(d). The full details of this statute can be found at statutes.capitol.texas.gov.
What Is the Gross Receipts Tax (GRT)?
The GRT is a tax that a utility company must pay if it makes a sale to a customer in an incorporated city or town with a population of more than 1,000, according to the last federal census. These taxes are passed on to electricity customers. More details about the GRT and the associated rates for different population sizes can be found at comptroller.texas.gov.
Does This Legislation Prevent Providers From Applying GRT to Electricity Sales for Any Other Entity Types?
No, this house bill does not prohibit the application of GRT to electricity sales for other political subdivisions, such as cities and counties, or for an educational entity that is not a “public school district customer” under Tax Code 182.022. It’s important to note that entities that qualify as school districts under other laws do not necessarily qualify as public school districts under this provision.
This information is neither an exhaustive treatment on the subject nor intended to substitute for the advice of an attorney or other professional advisor.
TASB Energy Cooperative Can Help With Your District’s Electricity Needs
TASB Energy Cooperative members in deregulated electricity areas in Texas can take advantage of competitive, fixed rates on electricity by participating in our electricity program. The TASB Energy Cooperative exclusive contract available to members from the awarded retail electric provider was built with Texas school districts in mind, including benefits like no monthly meter charges, unlimited add/deletes, and unlimited usage swing. The Cooperative currently has 200-plus governmental entity participants across Texas with around 1.5 Terawatt hours (TWh) per year.
TASB Energy Cooperative Electricity Program
Members in deregulated electricity areas in Texas can procure electricity through a service agreement with a retail electric provider awarded by the TASB Energy Cooperative.
The TASB Energy Cooperative electricity purchasing program is administered by the Texas Association of School Boards, Inc. (TASB), an electricity broker and aggregator registered with the Public Utility Commission of Texas.
