Texas 2019 - 86th Regular

Texas House Bill HB3275 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R4882 BEF-D
2	2	By: González of Dallas H.B. No. 3275
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the repeal of the exemption from the severance tax for
8	8	flared or vented gas.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 201.052(a), Tax Code, is amended to read
11	11	as follows:
12	12	(a) The tax imposed by this chapter is at the rate of 7.5
13	13	percent of the market value of gas produced [and saved] in this
14	14	state by the producer.
15	15	SECTION 2. Section 201.053, Tax Code, is amended to read as
16	16	follows:
17	17	Sec. 201.053. GAS NOT TAXED. The tax imposed by this
18	18	chapter does not apply to gas:
19	19	(1) injected into the earth in this state, unless sold
20	20	for that purpose;
21	21	(2) [produced from oil wells with oil and lawfully
22	22	vented or flared;
23	23	[(3)] used for lifting oil, unless sold for that
24	24	purpose; or
25	25	(3) [(4)] produced in this state from a well that
26	26	qualifies under Section 202.056 or 202.060.
27	27	SECTION 3. Section 201.059(a)(3), Tax Code, is amended to
28	28	read as follows:
29	29	(3) "Qualifying low-producing well" means a gas well
30	30	whose production during a three-month period is no more than 90 mcf
31	31	per day[, excluding gas flared pursuant to the rules of the
32	32	commission]. For purposes of qualifying a gas well, production per
33	33	well per day is determined by computing the average daily
34	34	production from the well using the monthly well production report
35	35	made to the commission.
36	36	SECTION 4. Sections 201.059(c), (d), and (e), Tax Code, are
37	37	amended to read as follows:
38	38	(c) An operator of a qualifying low-producing well is
39	39	entitled to a 25 percent credit on the tax otherwise due on gas
40	40	produced [and saved] from that well during a month if the average
41	41	taxable price of gas certified by the comptroller under Subsection
42	42	(b) for the previous three-month period is more than $3 per mcf but
43	43	not more than $3.50 per mcf.
44	44	(d) An operator of a qualifying low-producing well is
45	45	entitled to a 50 percent credit on the tax otherwise due on gas
46	46	produced [and saved] from that well during a month if the average
47	47	taxable price of gas certified by the comptroller under Subsection
48	48	(b) for the previous three-month period is more than $2.50 per mcf
49	49	but not more than $3 per mcf.
50	50	(e) An operator of a qualifying low-producing well is
51	51	entitled to a 100 percent credit on the tax otherwise due on gas
52	52	produced [and saved] from that well during a month if the average
53	53	taxable price of gas certified by the comptroller under Subsection
54	54	(b) for the previous three-month period is not more than $2.50 per
55	55	mcf.
56	56	SECTION 5. Section 201.201, Tax Code, is amended to read as
57	57	follows:
58	58	Sec. 201.201. TAX DUE. The tax imposed by this chapter for
59	59	gas produced [and saved] is due at the office of the comptroller in
60	60	Austin on the 20th day of the second month following the month of
61	61	production.
62	62	SECTION 6. The change in law made by this Act does not
63	63	affect tax liability accruing before the effective date of this
64	64	Act. That liability continues in effect as if this Act had not been
65	65	enacted, and the former law is continued in effect for the
66	66	collection of taxes due and for civil and criminal enforcement of
67	67	the liability for those taxes.
68	68	SECTION 7. This Act takes effect September 1, 2019.