Tex. Tax Code Section 301.004
Telephone Company Exemption

(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 (Franchise Tax) 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.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 3, Sec. 3, eff. Oct. 1, 1988.

Source: Section 301.004 — Telephone Company Exemption, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­301.­htm#301.­004 (accessed May 26, 2025).

Green check means up to date. Up to date

Verified:
May 26, 2025

§ 301.004. Tel. Company Exemption's source at texas​.gov