Texas Tax Code - TAX § 301.004. Telephone Company Exemption

(a) A municipality or other political subdivision of this state may not impose an occupation tax or any charge for the privilege of doing business on a telephone company taxed under Chapter 171 of this code.

(b) This section does not:

(c) In this section, “telephone company” means a person who owns or operates a telephone line or a telephone network in this state, charges for its use, and is regulated by the Public Utility Commission of Texas as a certificated provider of local exchange telephone service.