← All explainers
HB 167Introduced; filed Nov. 9, 202690th Regular Session (2027)

Data centers would pay sales and use tax on the power they use in Texas

What it does

HB 167 would end the sales and use tax exemption for electricity used directly by a data center or large data center project certified by the comptroller. It would repeal the Tax Code sections that created those exemptions, including Section 313.009. Projects that were certified before the bill takes effect would keep their exemption until their exemption period ends. Applications that were still pending on the effective date would be treated as denied.

What it means for your community

Data center operators would pay sales and use tax on the electricity they use, and cities with a local sales tax could collect more from that use, because the bill also takes these projects off the list of power uses that are exempt from city sales tax. Builders with projects already certified keep their tax break for now, so the effect would grow over time. Whether a data center's costs go up depends on how much power it uses and the tax rates where it is located.

Have an opinion on HB 167?

Your lawmaker's office counts calls. Find yours and call in under a minute.

Call your lawmaker about HB 167
Read the full bill on Texas Legislature Online

Free weekly email

Get the Tuesday email

One short, plain-English recap of what the Legislature did last week. Free. Unsubscribe anytime.

We describe legislation. We do not endorse or oppose it. If you spot an error, tell us and we will correct it.