| 6 | 4 | | AN ACT |
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| 7 | 5 | | relating to the repeal of the production taxes on crude petroleum |
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| 8 | 6 | | and sulphur. |
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| 9 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 8 | | SECTION 1. The following provisions are repealed: |
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| 11 | 9 | | (1) Sections 81.111, 81.112, 81.113, and 81.114, |
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| 12 | 10 | | Natural Resources Code; and |
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| 13 | 11 | | (2) Chapter 203, Tax Code. |
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| 14 | 12 | | SECTION 2. Section 355.102(f), Estates Code, is amended to |
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| 15 | 13 | | read as follows: |
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| 16 | 14 | | (f) Class 5 claims are composed of claims for taxes, |
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| 17 | 15 | | penalties, and interest due under Title 2, Tax Code, Chapter 2153, |
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| 18 | 16 | | Occupations Code, former Section 81.111, Natural Resources Code, |
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| 19 | 17 | | the Municipal Sales and Use Tax Act (Chapter 321, Tax Code), Section |
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| 20 | 18 | | 451.404, Transportation Code, or Subchapter I, Chapter 452, |
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| 21 | 19 | | Transportation Code. |
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| 22 | 20 | | SECTION 3. Section 81.018(a), Natural Resources Code, is |
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| 23 | 21 | | amended to read as follows: |
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| 24 | 22 | | (a) Salaries and other expenses necessary in the |
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| 25 | 23 | | administration and enforcement of the oil and gas laws shall be paid |
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| 26 | 24 | | by warrants drawn by the comptroller on the State Treasury from |
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| 27 | 25 | | general revenue [funds provided under Section 81.112 of this code]. |
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| 28 | 26 | | SECTION 4. The heading to Subchapter E, Chapter 81, Natural |
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| 29 | 27 | | Resources Code, is amended to read as follows: |
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| 30 | 28 | | SUBCHAPTER E. FEES [TAX] |
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| 31 | 29 | | SECTION 5. Section 81.116(b), Natural Resources Code, is |
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| 32 | 30 | | amended to read as follows: |
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| 33 | 31 | | (b) The fee is in addition to, and independent of any |
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| 34 | 32 | | liability for, the tax [taxes] imposed under [Section 81.111 of |
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| 35 | 33 | | this code and] Chapter 202, Tax Code. |
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| 36 | 34 | | SECTION 6. Section 112.155(a), Tax Code, is amended to read |
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| 37 | 35 | | as follows: |
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| 38 | 36 | | (a) The amount of a judgment for the plaintiff shall be |
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| 39 | 37 | | credited against any tax, penalty, or interest imposed by this |
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| 40 | 38 | | title [or by Section 81.111, Natural Resources Code,] and due from |
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| 41 | 39 | | the plaintiff. |
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| 42 | 40 | | SECTION 7. Section 151.308, Tax Code, is amended to read as |
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| 43 | 41 | | follows: |
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| 44 | 42 | | Sec. 151.308. ITEMS TAXED BY OTHER LAW. (a) The following |
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| 45 | 43 | | are exempted from the taxes imposed by this chapter: |
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| 46 | 44 | | (1) oil as taxed by Chapter 202; |
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| 47 | 45 | | (2) [sulphur as taxed by Chapter 203; |
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| 48 | 46 | | [(3)] motor fuels and special fuels as defined, taxed, |
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| 49 | 47 | | or exempted by Chapter 162; |
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| 50 | 48 | | (3) [(4)] cement as taxed by Chapter 181; |
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| 51 | 49 | | (4) [(5)] motor vehicles, trailers, and semitrailers |
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| 52 | 50 | | as defined, taxed, or exempted by Chapter 152, other than a mobile |
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| 53 | 51 | | office or an oilfield portable unit, as those terms are defined by |
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| 54 | 52 | | Section 152.001; |
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| 55 | 53 | | (5) [(6)] mixed beverages, ice, or nonalcoholic |
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| 56 | 54 | | beverages and the preparation or service of these items if the |
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| 57 | 55 | | receipts are taxable by Subchapter B, Chapter 183, or the items are |
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| 58 | 56 | | taxable by Subchapter B-1, Chapter 183; |
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| 59 | 57 | | (6) [(7)] alcoholic beverages when sold to the holder |
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| 60 | 58 | | of a private club registration permit or to the agent or employee of |
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| 61 | 59 | | the holder of a private club registration permit if the holder or |
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| 62 | 60 | | agent or employee is acting as the agent of the members of the club |
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| 63 | 61 | | and if the beverages are to be served on the premises of the club; |
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| 64 | 62 | | (7) [(8)] oil well service as taxed by Subchapter E, |
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| 65 | 63 | | Chapter 191; and |
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| 66 | 64 | | (8) [(9)] insurance premiums subject to gross |
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| 67 | 65 | | premiums taxes. |
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| 68 | 66 | | (b) Natural gas is exempted under Subsection (a)(2) |
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| 69 | 67 | | [(a)(3)] only to the extent that the gas is taxed as a motor fuel |
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| 70 | 68 | | under Chapter 162. |
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| 71 | 69 | | SECTION 8. Subchapter H, Chapter 151, Tax Code, is amended |
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| 72 | 70 | | by adding Section 151.3171 to read as follows: |
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| 73 | 71 | | Sec. 151.3171. SULPHUR. Sulphur is exempted from the taxes |
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| 74 | 72 | | imposed by this chapter. |
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| 75 | 73 | | SECTION 9. The change in law made by this Act does not |
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| 76 | 74 | | affect tax liability accruing before the effective date of this |
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| 77 | 75 | | Act. That liability continues in effect as if this Act had not been |
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| 78 | 76 | | enacted, and the former law is continued in effect for the |
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| 79 | 77 | | collection of taxes due and for civil and criminal enforcement of |
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| 80 | 78 | | the liability for those taxes. |
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| 81 | 79 | | SECTION 10. This Act takes effect September 1, 2015. |
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