81R1636 JE-D
By: Averitt, Harris S.B. No. 846
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of oil and gas royalty interests owned by
private institutions of higher education from oil and gas severance
taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 201, Tax Code, is amended
by adding Section 201.056 to read as follows:
Sec. 201.056. EXEMPTION OF PRIVATE OR INDEPENDENT
INSTITUTIONS OF HIGHER EDUCATION. (a) "Private or independent
institution of higher education" has the meaning assigned by
Section 61.003, Education Code.
(b) Royalty interests owned by a private or independent
institution of higher education are not subject to the tax imposed
by this chapter.
SECTION 2. Subchapter B, Chapter 202, Tax Code, is amended
by adding Section 202.062 to read as follows:
Sec. 202.062. EXEMPTION OF PRIVATE OR INDEPENDENT
INSTITUTIONS. (a) "Private or independent institution of higher
education" has the meaning assigned by Section 61.003, Education
Code.
(b) Royalty interests owned by a private or independent
institution of higher education are not subject to the tax imposed
by this chapter.
SECTION 3. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 4. This Act takes effect September 1, 2009.