| 1 | 1 | | 2017S0276-1 02/21/17 |
|---|
| 2 | 2 | | By: Seliger S.B. No. 1008 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to funding for the economic stabilization fund, including |
|---|
| 8 | 8 | | the rates of severance taxes on oil and gas production. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 201.052, Tax Code, is amended by |
|---|
| 11 | 11 | | amending Subsection (a) and adding Subsection (b) to read as |
|---|
| 12 | 12 | | follows: |
|---|
| 13 | 13 | | (a) Except as provided by Subsection (b), the [The] tax |
|---|
| 14 | 14 | | imposed by this chapter is at the rate of 7.5 percent of the market |
|---|
| 15 | 15 | | value of gas produced and saved in this state by the producer. |
|---|
| 16 | 16 | | (b) The rate of tax on gas production described by |
|---|
| 17 | 17 | | Subsection (a) is subject to Section 49-g(c-6), Article III, Texas |
|---|
| 18 | 18 | | Constitution. |
|---|
| 19 | 19 | | SECTION 2. Section 202.052, Tax Code, is amended by |
|---|
| 20 | 20 | | amending Subsections (a) and (b) and adding Subsection (d) to read |
|---|
| 21 | 21 | | as follows: |
|---|
| 22 | 22 | | (a) Except as provided by Subsection (d), the [The] tax |
|---|
| 23 | 23 | | imposed by this chapter is at the rate of 4.6 percent of the market |
|---|
| 24 | 24 | | value of oil produced in this state or 4.6 cents for each barrel of |
|---|
| 25 | 25 | | 42 standard gallons of oil produced in this state, whichever rate |
|---|
| 26 | 26 | | results in the greater amount of tax. |
|---|
| 27 | 27 | | (b) Except as provided by Subsection (d), for [For] oil |
|---|
| 28 | 28 | | produced in this state from a new or expanded enhanced recovery |
|---|
| 29 | 29 | | project that qualifies under Section 202.054 of this code, the rate |
|---|
| 30 | 30 | | of the tax imposed by this chapter is 2.3 percent of the market |
|---|
| 31 | 31 | | value of the oil. |
|---|
| 32 | 32 | | (d) The rates of tax on oil production described by |
|---|
| 33 | 33 | | Subsections (a) and (b) are subject to Section 49-g(c-5), Article |
|---|
| 34 | 34 | | III, Texas Constitution. |
|---|
| 35 | 35 | | SECTION 3. The heading to Subchapter H, Chapter 316, |
|---|
| 36 | 36 | | Government Code, is amended to read as follows: |
|---|
| 37 | 37 | | SUBCHAPTER H. STATE HIGHWAY [PRESERVATION OF SUFFICIENT BALANCE IN |
|---|
| 38 | 38 | | ECONOMIC STABILIZATION] FUND |
|---|
| 39 | 39 | | SECTION 4. Section 404.0241(c), Government Code, is amended |
|---|
| 40 | 40 | | to read as follows: |
|---|
| 41 | 41 | | (c) The comptroller shall include the fair market value of |
|---|
| 42 | 42 | | the investment portfolio of the economic stabilization fund in |
|---|
| 43 | 43 | | calculating the amount in the fund for purposes of Section 49-g(g), |
|---|
| 44 | 44 | | Article III, Texas Constitution[, and Section 316.093 of this |
|---|
| 45 | 45 | | code]. |
|---|
| 46 | 46 | | SECTION 5. The following provisions of the Government Code |
|---|
| 47 | 47 | | are repealed: |
|---|
| 48 | 48 | | (1) Sections 316.091, 316.092, and 316.093; and |
|---|
| 49 | 49 | | (2) Sections 404.0241(a) and (d). |
|---|
| 50 | 50 | | SECTION 6. This Act takes effect January 1, 2018, but only |
|---|
| 51 | 51 | | if the constitutional amendment proposed by the 85th Legislature, |
|---|
| 52 | 52 | | Regular Session, 2017, providing for foregoing the transfer of oil |
|---|
| 53 | 53 | | and gas production tax revenue to the economic stabilization fund |
|---|
| 54 | 54 | | if the ending fund balance for the preceding fiscal year is greater |
|---|
| 55 | 55 | | than $5 billion and for reducing the rates of oil and gas production |
|---|
| 56 | 56 | | taxes by amounts sufficient to equal the foregone transfer is |
|---|
| 57 | 57 | | approved by the voters. If that amendment is not approved by the |
|---|
| 58 | 58 | | voters, this Act has no effect. |
|---|