What the Texas Electricity Tax Exemption Means for Submetered RV Parks
If you operate an RV park in Texas and use smart sub-metering, you may be sitting on a major cost-saving opportunity.
According to Texas law (Administrative Code § 3.295), electricity used by long-term tenants — those staying over 30 consecutive days — is exempt from sales tax if they consume over 50% of the electricity measured through a single utility account. This is known as the predominant use exemption.
Why It Matters for Sub-metered Parks:
Most RV parks with sub-metering track electricity use at the site level, even if billing is done through a master meter. That means you have data to prove predominant use—as long as your metering system records by site and stay duration.
If your park qualifies:
-
Sales tax can be removed from your electric bills moving forward
-
You can apply for a refund on up to 4 years of overpaid taxes
-
Lower operating costs can raise your NOI and property value
How to Claim the Exemption
-
Get a Predominant Use Study
-
Hire a qualified professional to analyze a year of usage data.
-
File Form 01-339
-
Submit this exemption certificate with your study to your utility provider.
-
(Optional) Request a Refund
-
If you’ve been paying tax, file Form 01-158 with the Comptroller to request a retroactive refund.
Wild Energy Can Help
Smart metering gives you the usage data required to support a predominant use study and ensure compliance. Wild Energy systems track guest stay lengths and kWh per site, making it easier to verify your eligibility.
If you’re already using Wild Energy, you’re halfway there. If you’re considering submetering at your property, this exemption is another reason to act now.
Contact us to get a free quote and guidance on how to get started.
-----
Read the full article on Woodall’s Campground Magazine:
