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 services. Specifically, it states that municipalities cannot set a higher rate for these services for entities that qualify for sales tax or ad valorem tax exemptions compared to the rates charged to entities receiving comparable utility services. This aims to ensure fairness and equity in the pricing of essential services.

The new section, 552.916, emphasizes the importance of non-discrimination in utility rates, thereby protecting exempt entities from being charged disproportionately higher rates. The bill is set to take effect on September 1, 2025, allowing municipalities time to adjust their rate structures in compliance with this new regulation.

Statutes affected:
Introduced: ()