Are Energy Companies Charging Sales Tax?

by admin on September 10, 2012

Recently, I found a document on the Public Utility Commission on Texas Interchange about Glacial Energy and sales tax. If you did not know, residential customers do not have to pay sales taxes on electricity.

Think about it, if energy companies can charge you for false sales taxes on your electricity what else could they charge you? This is why we always tell you to check fees and charges you are being billed each month.

Some fees will be on your bill you may not recognize, like Transmission and Distribution or TDSP Charges. These charges come directly from the poles and wire companies and should be the same no matter what provider you choose.

I have talked to a few people who were confused about changes to TDSP Charges. If there is a change you should receive a notice. In most cases you will see an increase after really bad storms or new government regulations come out. Remember the poles and wires company pays for all the damages from storms which it then turns around and charges to you.

If an energy company tells you it’s charging you sales taxes contact the PUCT. Be sure to give them as much information as you can. It would not hurt to record you conversation with the electric company as evidence to support your complaint.

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