Tex. Water Code § 13.192
Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.
Payments made in lieu of taxes by a water and sewer utility to the municipality by which it is owned may not be considered an expense of operation for the purpose of determining, fixing, or regulating the rates to be charged for the provision of utility service to a school district or hospital district. No rates received by a utility from a school district or hospital district may be used to make or to cover the cost of making payments in lieu of taxes to the municipality by which the utility is owned.
Tex. Water Code § 13.192