September 7, 2012 DonnyE

You are Exempt from the 6.25 % State Sales Tax if Your a Residential Electricity Customer

You may be with one of the many customers that signed up with a residential electric company that is charging you a 6.25 % fee and calling this fee State Sales Tax.

They may explain to you that this fee is required and that there is nothing they can do to remove it but this would be a very bad mistake on their part to make such a claim especially if you are recording the phone call.

In reality, these energy suppliers that are charging this fee in Texas to residential electric customers are pocketing that money because the state does not require this money from residential electric service customers.

Imagine providers getting away with tagging on an additional 6.25 % on their electric rate and yet getting to advertise a rate that shows something cheaper.

Almost all of us would fall for this scheme and so you can imagine why a few dishonest electricity companies would try to squeeze out a little more from you by adding an additional line item in the bill called “Texas State Sales Tax”

Fortunately most energy providers do not do this and many of the ones that are doing it have been fined, penalized, and made to refund back this money by the PUCT.

You can read the actual Texas state sales tax rule for residential electric service on this page http://www.window.state.tx.us/taxinfo/taxpubs/tx96_1309.pdf where it clearly explains residential customers are not to be charged.

In the most recent example of this cramming of additional charges into an electric bill the excuse given was that some residential customers were simply accidentally classified as commercial customers.

I recommend that everyone get out their most recent electric bill and just make sure that 6.25% state sales tax is not showing up on your bill too.

About the Author

DonnyE Donny owns Electricitybid.com and started the website back in 2007 to help energy consumers in Texas and the U.S. shop for electric rates from multiple vetted electric companies. In his spare time he enjoys wrestling with his 6 year old son, 3 year old son and our new 20 month old son. He also likes softball, kickboxing, and doing fun excursions and activities with his wife Melody.

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