Texas 2019 - 86th Regular

Texas Senate Bill SB214

Caption

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

Impact

The implications of SB214 are crucial for state revenue generation tied to oil and gas production, especially in Texas, where these industries play a central economic role. By modifying the severance tax rates, the bill potentially impacts the state's fiscal stability and resource management. A key component of the bill is its dependency on a constitutional amendment from the 86th Legislature, which would allow the state to forego certain transfers to the economic stabilization fund based on the fund's ending balance, essentially altering how funds are allocated and managed during periods of revenue surplus.

Summary

Senate Bill 214, titled 'Relating to funding for the economic stabilization fund, including the rates of severance taxes on oil and gas production,' seeks to make amendments to the state's tax code concerning the taxes imposed on oil and gas production. The bill specifies the rates of severance taxes for natural gas and oil, with the general rate being set at 7.5 percent for gas and 4.6 percent for oil, aligning with market valuations. This legislative proposal is significant as it attempts to ensure consistent funding for the economic stabilization fund, which safeguards the state's financial health during economic downturns.

Contention

Notable contention arises from the conditions set forth in the bill regarding its enactment, which hinges on voter approval of a proposed constitutional amendment. Should the amendment fail, the provisions of SB214 will not take effect, leading to discussions among legislators about the implications of shifting tax responsibilities and the potential challenges in funding state programs. Critics and supporters of the bill may engage in deeper discussions on the balance between taxation, state funding, and economic growth, making it a topic of interest in forthcoming legislative sessions.

Companion Bills

TX SJR21

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 10 percent of the prior fiscal year's total net general revenue related collections 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 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 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 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.