NOTICE DATE: October 23, 2020
NOTICE TYPE: M-A102320-01 Legal
SHORT DESCRIPTION: Amendment to Texas Comptroller of Public Accounts Rule Impacting ERCOT Market Participants
INTENDED AUDIENCE: All ERCOT Market Participants
DAY AFFECTED: October 13, 2020
LONG DESCRIPTION: On October 13, 2020, an amendment to a Texas Comptroller of Public Accounts rule impacting the ERCOT market went into effect. More specifically, new subsection (c)(6) was added to 34 Texas Administrative Code (TAC) § 3.285, a sales tax rule concerning resale certificates and sales for resale. The new subsection provides that ERCOT, as the independent organization certified under Texas Utilities Code § 39.151, is not required to collect or issue resale certificates for electricity sold for resale in the ERCOT market to qualify for an exemption from state sales tax. As adopted, 34 TAC § 3.285(c)(6) provides as follows:
Electricity sales and purchases by independent organization certified under Texas Utilities Code, §39.151. A resale certificate is not required to be issued by a person who purchases electricity solely for the purpose of resale from the independent organization certified under Texas Utilities Code, §39.151. The independent organization certified under Texas Utilities Code, §39.151 is not required to issue a resale certificate to a person from whom it purchases electricity solely for the purpose of resale.
ADDITIONAL INFORMATION: The rule adoption can be found in the October 9, 2020, issue of the Texas Register, and the rule language is available here. ERCOT previously discussed this issue with stakeholders at the October 23 and November 20, 2019, meetings of the Technical Advisory Committee (TAC).
CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.
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