Tex. Tax Code § 321.207 — LOCAL TAX INAPPLICABLE WHEN NO STATE TAX; EXCEPTIONS

(a) The sales tax authorized by this chapter does not apply to the sale of a taxable item unless the sales tax imposed by Subchapter C , Chapter 151 , also applies to the sale. (b) The excise tax authorized by this chapter on the use, storage, or consumption of a taxable item does not apply to the use, storage, or consumption of a taxable item unless the tax imposed by Subchapter D , Chapter 151 , also applies to the use, storage, or consumption. (c) Subsections (a) and (b) do not apply to the taxes authorized by this chapter on the sale, production, distribution, lease, or rental of, and the use, storage, or consumption of gas and electricity for residential use. (d) Subsection (b) does not apply to the application of the tax in a situation described by Section 321.205 (b). Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 28, eff. Sept. 1, 1991.