| 1 | 1 | | 81R10195 BEF-F |
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| 2 | 2 | | By: Gonzalez Toureilles H.B. No. 4063 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the periods for applying for and receiving designation |
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| 8 | 8 | | of a well as a two-year inactive well for purposes of the oil and gas |
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| 9 | 9 | | severance tax exemption. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Sections 202.056(c) and (d), Tax Code, are |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | (c) If the commission designates a three-year inactive well |
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| 14 | 14 | | under this section, it shall issue a certificate designating the |
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| 15 | 15 | | well as a three-year inactive well as defined by Subsection (a)(3) |
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| 16 | 16 | | of this section. The commission may not designate a three-year |
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| 17 | 17 | | inactive well under this section after February 29, 1996. If the |
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| 18 | 18 | | commission designates a two-year inactive well under this section, |
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| 19 | 19 | | it shall issue a certificate designating the well as a two-year |
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| 20 | 20 | | inactive well as defined by Subsection (a)(4) of this section. The |
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| 21 | 21 | | commission may not designate a two-year inactive well under this |
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| 22 | 22 | | section after February 28, 2020 [2010]. |
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| 23 | 23 | | (d) An application for three-year inactive well |
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| 24 | 24 | | certification shall be made during the period of September 1, 1993, |
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| 25 | 25 | | through August 31, 1995, to qualify for the tax exemption under this |
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| 26 | 26 | | section. An application for two-year inactive well certification |
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| 27 | 27 | | shall be made during the period September 1, 1997, through August |
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| 28 | 28 | | 31, 2019 [2009], to qualify for the tax exemption under this |
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| 29 | 29 | | section. Hydrocarbons sold after the date of certification are |
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| 30 | 30 | | eligible for the tax exemption. |
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| 31 | 31 | | SECTION 2. This Act takes effect immediately if it receives |
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| 32 | 32 | | a vote of two-thirds of all the members elected to each house, as |
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| 33 | 33 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 34 | 34 | | Act does not receive the vote necessary for immediate effect, this |
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| 35 | 35 | | Act takes effect on the 91st day after the last day of the |
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| 36 | 36 | | legislative session. |
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