TX
Texas Senate Bill SB1008

Texas 2017 - 85th Regular

Texas Senate Bill SB1008

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to funding for the economic stabilization fund, including the rates of severance taxes on oil and gas production.

Impact

If enacted, SB1008 would not only affect tax revenue flows into the Economic Stabilization Fund, but also reshape how businesses and operators in the oil and gas sector manage their tax liabilities associated with production. By allowing for adjusted severance taxes, the bill aims to stabilize funding for the state's essential services dependent on these revenues, particularly in times of fluctuating oil and gas prices. This could provide some predictability for state funding but might also influence the operational strategy of oil and gas companies regarding investments and extraction activities within Texas.

Summary

SB1008 is a bill introduced in the Texas legislature aimed at revising funding mechanisms for the Economic Stabilization Fund, particularly concerning the severance tax rates applied to oil and gas production. The bill outlines amendments to existing tax code provisions that govern the taxation of oil and gas extracted within the state, shifting some of the fiscal implications for both producers and the state budget. One significant change noted in the bill is the introduction of variable rates for oil depending on the type of extraction project, as well as maintaining the overall severance tax at specific thresholds tied to the Texas Constitution.

Contention

While supporters argue that the bill is a necessary reform to ensure sustainable funding for state services, critics have raised concerns about its potential implications for local economic conditions. There are fears that increasing reliance on these tax funds could prioritize state interests at the expense of local needs, especially in regions heavily dependent on oil and gas production. Additionally, the bill's linkage to a voter-approved constitutional amendment may create uncertainty about its implementation if such provisions are not approved in upcoming elections.

Latest TX SB1008 Activity

View All Events: TX 2017 - 85th Regular SB1008

Companion Bills

TX SJR41

Enabling for Proposing a constitutional amendment to provide for foregoing the transfer of oil and gas production tax revenue to the economic stabilization fund if the ending fund balance for the preceding fiscal year is greater than $5 billion and for reducing the rates of oil and gas production taxes by amounts sufficient to equal the foregone transfer.

Previously Filed As

TX HB2207

Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, the oil and gas regulation and cleanup account, the Texas emissions reduction plan fund, the property tax relief fund, and the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund and to the permissible uses of money deposited to the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund.

TX HB5227

Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the Texas legacy fund, and the state highway fund and to the management and investment of the economic stabilization fund, the Texas legacy fund, and the Texas legacy distribution fund.

TX HJR111

Proposing a constitutional amendment providing for the creation of the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund, dedicating the money in that fund to benefit areas of the state significantly affected by oil and gas production, and providing for the transfer of certain general revenues to that fund, the economic stabilization fund, the state highway fund, the oil and gas regulation and cleanup account, the Texas emissions reduction plan fund, and the property tax relief fund.

TX HB1392

Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, and the Grow Texas fund and to the permissible uses of money deposited to the Grow Texas fund.

TX HJR27

Proposing a constitutional amendment providing for the creation of and use of money in the Grow Texas fund and allocating certain general revenues to that fund, the economic stabilization fund, and the state highway fund.

TX HB4419

Relating to the promotion of film and television production in this state, including the eligibility of film or television productions for funding under the major events reimbursement program, the creation of a film events trust fund and a film production tax rebate trust fund, the establishment of virtual film production institutes, and the designation of media production development zones.

TX SB1232

Relating to the determination of the sufficient balance of the economic stabilization fund for the purpose of allocating general revenue to that fund and the state highway fund.

TX HB2230

Relating to the determination of the sufficient balance of the economic stabilization fund for the purpose of allocating general revenue to that fund and the state highway fund.

TX HB2

Relating to measures for ensuring safety and security in public schools, including the establishment of a school safety grant program and a school safety plan implementation grant program, and the allocation of certain constitutional transfers of money to the state school safety fund, the economic stabilization fund, and the state highway fund.

TX HB38

Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.

Similar Bills

No similar bills found.