The bill, S.B. No. 2701, introduces a new provision to the Local Government Code that prohibits municipalities from establishing discriminatory rates for water or sewer utility services. Specifically, it states that municipalities cannot set a rate for these services that is higher for entities qualifying for sales tax or ad valorem tax exemptions compared to the rates charged to other entities receiving similar utility services. This aims to ensure equitable treatment of all entities regarding utility rates.

The new section, 552.916, emphasizes the importance of fair pricing practices by municipalities and seeks to prevent any financial disadvantage for exempt entities in comparison to their counterparts. The bill is set to take effect on September 1, 2025, allowing time for municipalities to adjust their rate structures in compliance with this new regulation.

Statutes affected:
Introduced: ()