Changes to utility tax disclosures taking effect this month

Cities that operate municipal utilities (including water, sewer, wastewater, or stormwater utilities) must disclose the tax or fee it charges to its utility customers starting June 11, 2020 with one of three options.

Cities may post this disclosure on their regular billing statements (either electronic or paper), on the city’s website, or through an insert, mailer, or other communication provided to customers. Cities must provide fee disclosures to customers either annually or within 30 days of the effective date of any subsequent tax rate change.

This change in utility tax disclosure is a result of HB 2889, passed by the Legislature during the 2020 session.