82S10233 MXM-D
By: Ellis, Davis, Lucio S.B. No. 37
A BILL TO BE ENTITLED
AN ACT
relating to the elimination of the tax exemption or reduction for
certain high-cost gas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.057(f), Tax Code, is amended to read
as follows:
(f) To qualify for the exemption or tax reduction provided
by this section, the person responsible for paying the tax must
apply to the comptroller. Notwithstanding any other provision of
this section, the application must be filed with the comptroller
before October 1, 2011. The application must contain the
certification of the commission that the well produces high-cost
gas and, if the application is for a well spudded or completed after
September 1, 1995, must contain a report of drilling and completion
costs incurred for each well on a form and in the detail as
determined by the comptroller. Drilling and completion costs for a
recompletion shall only include current and contemporaneous costs
associated with the recompletion. Notwithstanding any other
provision of this section, to obtain the maximum tax exemption or
tax deduction, an application to the comptroller for certification
according to Subsection (a)(2)(A) must be filed with the
comptroller before October 1, 2011, and at the later of the 180th
day after the date of first production or the 45th day after the
date of approval by the commission. If the application is not filed
by the applicable deadline to obtain the maximum tax exemption or
tax deduction but is filed before October 1, 2011, the tax exemption
or tax deduction is reduced by 10 percent for the period beginning
on the 180th day after the first day of production and ending on the
date on which the application is filed with the comptroller. An
application to the comptroller for certification according to
Subsection (a)(2)(B) may not be filed before January 1, 1990, or
after December 31, 1998. The comptroller shall approve the
application of a person who demonstrates that the gas is eligible
for the exemption or tax reduction. The comptroller may require a
person applying for the exemption or tax reduction to provide any
relevant information in the person's monthly report that the
comptroller considers necessary to administer this section. The
commission shall notify the comptroller in writing immediately if
it determines that an oil or gas well previously certified as
producing high-cost gas does not produce high-cost gas or if it
takes any action or discovers any information that affects the
eligibility of gas for an exemption or tax reduction under this
section.
SECTION 2. The comptroller of public accounts shall deposit
to the credit of the foundation school fund any revenue received
during the state fiscal biennium beginning September 1, 2011, that
is generated by the change made by this Act to Section 201.057, Tax
Code.
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 immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect on the 91st day after the last day of the
legislative session.