Texas § UT.104.203 - PAYMENT IN LIEU OF TAX
Full text of Texas The Texas Constitution § UT.104.203 — PAYMENT IN LIEU OF TAX, with citation guidance and answers to common questions.
§ UT.104.203. PAYMENT IN LIEU OF TAX
PAYMENT IN LIEU OF TAX. (a) A payment made in lieu of a tax by a municipally owned utility to the municipality by which the utility is owned may not be considered an expense of operation in establishing the utility's rate for providing utility service to a school district or hospital district. (b) A rate a municipally owned utility receives from a school district or hospital district may not be used to make or to cover the cost of making payments in lieu of taxes to the municipality that owns the utility. Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997. SUBCHAPTER F. SERVICES
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § UT.104.203
What does The Texas Constitution § UT.104.203 cover?
Section UT.104.203 ("PAYMENT IN LIEU OF TAX") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § UT.104.203?
A common citation format is "The Texas Constitution § UT.104.203" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § UT.104.203 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.