LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 26, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1210 by Strama (Relating to the oil production tax rate reduction for oil recovered through certain enhanced oil recovery projects.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 202 of the Tax Code, regarding the oil production tax. Currently the producer of oil recovered through and Enhanced Oil Recovery Project (EOR) using anthropogenic carbon dioxide qualifies for a reduction in the oil production tax rate from 4.6% to 1.15% for 7 years after the date they first qualify. The bill would extend the period for which a tax reduction can be claimed for qualifying EOR projects from 7 to 30 years. Since the rate reduction already lasts for 7 years, there would be no fiscal impact until 2017 at the earliest. The Comptroller indicates that, currently, no tax rate reductions have been granted for EOR projects. The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, KK
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 26, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1210 by Strama (Relating to the oil production tax rate reduction for oil recovered through certain enhanced oil recovery projects.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB1210 by Strama (Relating to the oil production tax rate reduction for oil recovered through certain enhanced oil recovery projects.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB1210 by Strama (Relating to the oil production tax rate reduction for oil recovered through certain enhanced oil recovery projects.), As Introduced
HB1210 by Strama (Relating to the oil production tax rate reduction for oil recovered through certain enhanced oil recovery projects.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 202 of the Tax Code, regarding the oil production tax. Currently the producer of oil recovered through and Enhanced Oil Recovery Project (EOR) using anthropogenic carbon dioxide qualifies for a reduction in the oil production tax rate from 4.6% to 1.15% for 7 years after the date they first qualify. The bill would extend the period for which a tax reduction can be claimed for qualifying EOR projects from 7 to 30 years. Since the rate reduction already lasts for 7 years, there would be no fiscal impact until 2017 at the earliest. The Comptroller indicates that, currently, no tax rate reductions have been granted for EOR projects. The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009.
The bill would amend Chapter 202 of the Tax Code, regarding the oil production tax.
Currently the producer of oil recovered through and Enhanced Oil Recovery Project (EOR) using anthropogenic carbon dioxide qualifies for a reduction in the oil production tax rate from 4.6% to 1.15% for 7 years after the date they first qualify. The bill would extend the period for which a tax reduction can be claimed for qualifying EOR projects from 7 to 30 years. Since the rate reduction already lasts for 7 years, there would be no fiscal impact until 2017 at the earliest. The Comptroller indicates that, currently, no tax rate reductions have been granted for EOR projects.
The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK