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are repealed: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