Understanding The Tax on Your Texas Electric Service Bill

by admin on October 3, 2012

If you have moved to Texas and own or are renting a home you likely got signed up with electric service. In many cases you default to Reliant Energy or TXU Energy but eventually go shopping and pick a cheaper provider.

What we have seen over the years is that some electric utilities have been charging a sales tax to their residential customers. This sales tax usually comes out to 6.25 % on the bill.

The problem with this charge is that Texas residential energy customers are exempt from state sales tax and so you should not be charged this extra fee.

So what happens to this additional charge you are not even supposed to be paying? The fee is likely going to the bottom line at that providers income and the state never sees  it.

You could say, being charged a state sales tax on your electric service is a tricky way of cramming in additional fees without the customer knowing about it.

Don’t fall for this devious little scam but instead if you see that tax on your residential electric bill go ahead and report it to the Public Utility Commission of Texas and fax in a detailed complaint about it.

When you fax in a formal complaint the PUCT must research and follow up. What you will see is that with a formal complaint registered the provider will likely have to issue refunds to all of their customers they dishonestly charged this tax to.

When you report something like this you are not only helping yourself but likely thousands of other people that fell victim to the same thing.


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