Tex. Tax Code § 301.004
This is the official text of Tex. Tax Code § 301.004, part of Texas’s Tax Code — governs state and local taxation.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 301.004. TELEPHONE COMPANY EXEMPTION.
Official statutory text
(a) A municipality or other political subdivision of this state may not impose an occupation tax or any charge for the privilege of doing business on a telephone company taxed under Chapter 171 of this code.
(b) This section does not:
(1) prohibit the collection by a municipality of a franchise tax in effect on October 31, 1936;
(2) prohibit the collection of ad valorem taxes; or
(3) affect any contracts made between a municipality and a franchise holder.
(c) In this section, "telephone company" means a person who owns or operates a telephone line or a telephone network in this state, charges for its use, and is regulated by the Public Utility Commission of Texas as a certificated provider of local exchange telephone service.
(b) This section does not:
(1) prohibit the collection by a municipality of a franchise tax in effect on October 31, 1936;
(2) prohibit the collection of ad valorem taxes; or
(3) affect any contracts made between a municipality and a franchise holder.
(c) In this section, "telephone company" means a person who owns or operates a telephone line or a telephone network in this state, charges for its use, and is regulated by the Public Utility Commission of Texas as a certificated provider of local exchange telephone service.
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.