Sales Tax Exemption on Utilities

Category: TX State Programs

In Texas, companies that sell electricity in the retail market are subject to the Public Utility Gross Receipts Assessment (PUCA), and possibly the Miscellaneous Gross Receipts Tax (MGRT), on their gross receipts from the sale of electricity. These companies must collect from their customers, and remit to the Texas Comptroller of Public Accounts, any applicable state or local sales tax that is due on their retail transactions. To ensure compliance with the various tax laws, electric companies should be aware of certain billing issues relating to their payment and collection of taxes in this state.