83R1080 CJC-F
By: Ellis S.B. No. 71
A BILL TO BE ENTITLED
AN ACT
relating to eligibility for the tax reduction for certain high-cost
gas and the allocation of certain gas production tax revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.057, Tax Code, is amended by adding
Subsections (e-1) and (e-2) to read as follows:
(e-1) Each month, the commission shall certify the average
closing price of gas during the previous three months based on
various price indices available to producers. The commission
shall publish certifications under this subsection in the Texas
Register. Notwithstanding any other provision of this section, the
commission may not certify that gas is high-cost gas for purposes of
this section during any month that the average closing price of gas
certified by the commission for the previous three-month period is
more than $4 per mcf. If the price is later $4 per mcf or less, any
drilling and completion costs incurred during a month when the
price exceeds $4 per mcf are excluded from the calculation of the
cumulative value of the exemption under Subsection (c).
(e-2) The comptroller shall determine the additional
revenue from the tax imposed under this chapter that results from
the application of Subsection (e-1). After deducting the amount
required by Section 201.403, the comptroller shall deposit that
revenue to the credit of the foundation school fund. Section
201.404 does not apply to revenue deposited under this subsection.
SECTION 2. The Railroad Commission of Texas shall publish
the initial certification required by Section 201.057(e-1), Tax
Code, as added by this Act, not later than September 30, 2013.
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, 2013.