Corpus Christi tenant is questioning a "gross receipts tax" line item on their utility pass-through bill. CenterPoint Energy shows this as a separate charge. Landlord is passing it through at 100%. Is this legit? Texas doesn't have a state gross receipts tax that I know of.
CenterPoint Energy gross receipts tax in lease pass-through
That's probably the Texas franchise tax showing up as "gross receipts tax" on the CenterPoint bill. It's legitimate - utilities pay it and pass it to customers. Rate is usually around 0.75% of the revenue. Seen it on Entergy bills in Alabama too.
Connie's right about the franchise tax. In Tennessee we see it on TVA bills too. The question is whether the lease specifically allows tax pass-throughs. Some leases only allow "utility charges" but exclude taxes.
Checked the lease - it says "all utility costs and charges" so I think the tax is included. Thanks for clarifying that it's a real charge. Client was suspicious because the amount seemed high ($47/month).