The Attorney General of Texas 

December 14, 1978 

JOHN L. HILL 

Attorney General 

Honorable Bob Bullock 

Comptroller of Public Accounts 

L.B.J. Building 

Austin, Texas 78774 

Opinion No. H- 12 82 

Re: Whether a city adopting 

the local sales and use tax after 

October 1, 1979, may impose that 

tax on the residential use of gas 

and electricity. 

Dear Mr. Bullock: 

You have asked for an interpretation of article 1066q section 4A, 

V.T.C.S., which governs the exemption from the local sales and use tax of gas 

and electricity for residential use. Article 1066~ permits cities to adopt a one 

percent local sales and use tax by holding an election for that purpose. As 

originally enacted, article 1066c, V.T.C.S., imposed a tax on sales of gas and 

electricity for residential use. V.T.C.S. art. 1066c, 5 2B; see Tax.-Gen. art. 

20.04(R). The sixty-fifth legislature amended article 1066sy adding section 

4A, which reads in part: 

Sec. 4A. Effective October 1, 1979, there are 

exempted from the taxes imposed by this Act the 

receipts from the sale, production, distribution, lease 

or rental of, and the use, storage, or other consumption within the city of gas and electricity for 

residential use within a city adopting the taxes 

imposed by this Act unless prior to May 1, 1979, the 

governing body of the city, by a majority vote of the 

membership of the governing body, votes to continue 

the taxes authorized by this Act on the sale, production, distribution, lease or rental of, and the use, 

storage, or other consumption of gas and electricity 

for residential use. At any time before or after 

October 1, 1979, the governing body of a city that has 

adopted the tax authorized by this Act may, by a 

majority vote of the membership of the governing 

body, exempt from the taxes imposed by this Act the 

receipts from the sale, production, distribution, lease 

or rental of, and the use, storage, or other consumption within the city of gas and electricity for 

P. 5063 
i., 

Honorable Bob Bullock - Page 2 (H-12 82 ) 

residential use. The governing body of a city that has 

adopted the tax authorized by this Act and provided for the 

exemption authorized or required by this section may, by a 

majority vote of the governing body, reimpose the taxes on 

the sale, production, distribution, lease or rental of, and the 

use, storage, or other consumption in the city of gas and 

electricity for residential use. 

H.B. No. 1, Acts 1978, 65th Leg., 2d C.S., ch. 2, S 6, at 6-7. You ask whether a city 

which first adopts the local sales and use tax after October 1, 1979, may impose 

that tax on the residential use of gas and electricity. 

As of October 1, 1979, the amendment exempts the residential use of gas and 

electricity from the tax imposed under article 1066~ unless the city fits within one 

of the exceptions provided in section 4A. These exceptions are as follows: (1) Prior 

to May 1, 1979, its governing body votes to continue the tax. (2) The governing body 

of a city which has adopted the local sales and use tax and exempted the residential 

use of gas and electricity reimposes the tax by majority vote. A city which does 

not adopt the local sales and use tax until after October 1, 1979, cannot fit within 

the first exception. Nor can it in our opinion fit within the second exception. 

After October 1, 1979, the residential use of gas and electricity will be “exempted 

from the taxes imposed by this Act, ” i.e. article 1066c, V.T.C.S. Cities adopting 

the provisions of article 1066~ after October 1, 1979, will not be able to impose the 

tax on sales of gas and electricity for residential use. Thus they cannot become 

cities which have adopted the local sales and use tax and then exempted the 

residential use of gas and electricity. Their exemption will come about by 

operation of law rather than the city’s action. Moreover, cities which have never 

had the tax cannot be said to reimpose it, since “reimpose” means “to impose 

again.” Webster’s Third International Dictionary (emphasis added). Cf. Lowr v. 

Aetna Life Ins. Co., 120 S.W.2d 505 (Tex. Civ. App. - Dallas 1938, -.+ writ dmm’d 

(definition of reinstate). ln our opinion, section 4A of article 1066~ gives cities a 

limited time in which to impose a tax on the residential use of gas and electricity. 

Cf. Attorney General Opinion H-loll (1977) (time limit for counties to qualify for 

Eefits of National Flood Insurance Program). 

SUMMARY 

Cities that first adopt the local sales and use tax after 

October 1, 1979, may not impose the tax on the residential 

use of gas and electricity. 

Attorney General of Texas 

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Honorable Bob Bullock - Page 3 (H-12 82 ) 

APPROVED: 

C. ROBERT HEATH, Chairman 

Opinion Committee 

jsn 

P. 5065