Texas 2015 - 84th Regular

Texas Senate Bill SB1985 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Uresti S.B. No. 1985
2		-	(Bonnen of Brazoria)
	1	+	S.B. No. 1985
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the appraisal for ad valorem tax purposes of a real
8	6		property interest in oil or gas in place.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 23.175(a), Tax Code, is amended to read
11	9		as follows:
12	10		(a) If a real property interest in oil or gas in place is
13	11		appraised by a method that takes into account the future income from
14	12		the sale of oil or gas to be produced from the interest, the method
15	13		must use the average price of the oil or gas from the interest for
16	14		the preceding calendar year multiplied by a price adjustment factor
17	15		as the price at which the oil or gas produced from the interest is
18	16		projected to be sold in the current year of the appraisal. The
19	17		average price for the preceding calendar year is calculated by
20	18		dividing the sum of the monthly average prices for which oil and gas
21	19		from the interest was selling during each month of the preceding
22	20		calendar year by 12. If there was no production of oil or gas from
23	21		the interest during any month of the preceding calendar year, the
24	22		average price for which similar oil and gas from comparable
25	23		interests was selling during that month is to be used. Except as
26	24		otherwise provided by this subsection, the [The] chief appraiser
27	25		shall calculate the price adjustment factor by dividing the spot
28	26		price of West Texas Intermediate [imported low-sulfur light] crude
29	27		oil in nominal dollars per barrel or the spot price of natural gas
30	28		at the Henry Hub in nominal dollars per million British thermal
31	29		units, as applicable, as projected for the current calendar year by
32	30		the United States Energy Information Administration in the most
33	31		recently published edition [Early Release Overview] of the Annual
34	32		Energy Outlook by the spot price of West Texas Intermediate
35	33		[imported low-sulfur light] crude oil in nominal dollars per barrel
36	34		or the spot price of natural gas at the Henry Hub in nominal dollars
37	35		per million British thermal units, as applicable, for the preceding
38	36		calendar year as stated in the same report. If as of March 1 of the
39	37		current calendar year the most recently published edition of the
40	38		Annual Energy Outlook was published before December 1 of the
41	39		preceding calendar year, the chief appraiser shall use the
42	40		projected current and preceding calendar year spot price of West
43	41		Texas Intermediate crude oil in nominal dollars per barrel or the
44	42		spot price of natural gas at the Henry Hub in nominal dollars per
45	43		million British thermal units, as applicable, as stated in the
46	44		Short-Term Energy Outlook report published in January of the
47	45		current calendar year by the United States Energy Information
48	46		Administration in the price adjustment factor calculations. The
49	47		price for the interest used in the second through the sixth calendar
50	48		year of the appraisal may not reflect an annual escalation or
51	49		de-escalation rate that exceeds the average annual percentage
52	50		change from 1982 to the most recent year for which the information
53	51		is available in the producer price index for domestically produced
54	52		petroleum or for natural gas, as applicable, as published by the
55	53		Bureau of Labor Statistics of the United States Department of
56	54		Labor. The price for the interest used in the sixth calendar year
57	55		of the appraisal must be used in each subsequent year of the
58	56		appraisal.
59	57		SECTION 2. This Act applies only to the appraisal for ad
60	58		valorem tax purposes of a real property interest in oil or gas in
61	59		place for a tax year beginning on or after the effective date of
62	60		this Act.
63	61		SECTION 3. This Act takes effect January 1, 2016.
	62	+	______________________________ ______________________________
	63	+	President of the Senate Speaker of the House
	64	+	I hereby certify that S.B. No. 1985 passed the Senate on
	65	+	April 14, 2015, by the following vote: Yeas 31, Nays 0.
	66	+	______________________________
	67	+	Secretary of the Senate
	68	+	I hereby certify that S.B. No. 1985 passed the House on
	69	+	April 23, 2015, by the following vote: Yeas 137, Nays 2, two
	70	+	present not voting.
	71	+	______________________________
	72	+	Chief Clerk of the House
	73	+	Approved:
	74	+	______________________________
	75	+	Date
	76	+	______________________________
	77	+	Governor