Texas Senate Bill SB310

Texas 2021 - 87th Regular

Caption

Relating to the repeal of the temporary tax reduction for certain high-cost gas.

Impact

The enactment of SB310 will have significant implications for the state's tax structure, particularly among companies engaged in the extraction of natural gas. By removing the temporary tax reduction, the bill could lead to increased operational costs for these companies, which might influence pricing and production decisions. Additionally, this may impact the state’s revenue streams derived from natural gas and how these revenues impact overall state funding and budget allocations.

Summary

SB310 aims to repeal the temporary tax reduction for certain high-cost gas, particularly focusing on changes to the Natural Resources and Tax Codes in Texas. The legislation specifies that the repeal includes amendments to existing laws that provided exemptions and reductions affecting the fee imposed on natural gas production. This direct alteration is significant for gas producers, as it terminates favorable tax conditions that benefited those involved in high-cost gas production.

Contention

There is likely to be contention surrounding the repeal, given that stakeholders in the natural gas sector may oppose the removal of financial incentives that supported their operations. Opponents of the repeal might argue that it could lead to negative economic consequences, including potential job losses or reduced investment in high-cost gas production. However, proponents may contend that the repeal is a necessary step toward a more equitable tax structure that ensures fair contributions from all sectors to the state's finances.