Tex. Utilities Code § 36.353
This is the official text of Tex. Utilities Code § 36.353, part of Texas’s Utilities Code — regulates utility companies.
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§ 36.353. PAYMENT IN LIEU OF TAX.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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