Section 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: (1) prohibit the collection by a municipality of a franchise tax in effect on October 31, 1936;(2) prohibit the collection of ad valorem taxes; or(3) affect any contracts made between a municipality and a franchise holder.(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.Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 3, Sec. 3, eff. Oct. 1, 1988.