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Tex. Util. Code § 36.353

PAYMENT IN LIEU OF TAX

Known as the Public Utility Regulatory Act

The act spans §§ 11–66 (1,170 sections).

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff

(a) A payment made in lieu of a tax by a municipally owned utility to the municipality by which the utility is owned may not be considered an expense of operation in establishing the utility's rate for providing utility service to a school district or hospital district.

(b) A rate a municipally owned utility receives from a school district or hospital district may not be used to make or to cover the cost of making payments in lieu of taxes to the municipality that owns the utility.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.