Regional Certification for Water and Sewer Utilities

Explains role of the TCEQ in certifying utilities as regional providers of water and wastewater services. Links to standard letter utilities may complete to request this certification for the purpose of tax exemption.

Under Section §15.001(13) of the Texas Water Code and Section §151.355 of Texas Water Code, TCEQ provides regional certification for water and sewer utilities that meet any one of these criteria:

One owner and one large system serves several different communities or subdivisions.
One owner and several isolated systems each provide service to one or more communities or subdivisions.
Several owners each own one or more individual systems that are operated through a centrally coordinated operating system.
Several owners each own one or more individual systems that are operated through a central wholesale provider.

The TCEQ certifies only that an applicant has met any one of these four criteria.

Among other benefits, utilities certified as regional service providers are exempt from paying sales tax on water- and sewer-related equipment and materials under Section 151.355(5) of the Texas Tax Code. The Texas Comptroller of Public Accounts (1-800-252-5555) can answer your questions concerning tax-exempt purchases under this law.

Staff Contact

For more information you may e-mail your questions or comments to utildist@tceq.texas.gov. You can also call our main Water Supply Division line at 512-239-4691.

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