86R4882 BEF-D
By: González of Dallas H.B. No. 3275
A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the exemption from the severance tax for
flared or vented gas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.052(a), Tax Code, is amended to read
as follows:
(a) 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.
SECTION 2. Section 201.053, Tax Code, is amended to read as
follows:
Sec. 201.053. GAS NOT TAXED. The tax imposed by this
chapter does not apply to gas:
(1) injected into the earth in this state, unless sold
for that purpose;
(2) [produced from oil wells with oil and lawfully
vented or flared;
[(3)] used for lifting oil, unless sold for that
purpose; or
(3) [(4)] produced in this state from a well that
qualifies under Section 202.056 or 202.060.
SECTION 3. Section 201.059(a)(3), Tax Code, is amended to
read as follows:
(3) "Qualifying low-producing well" means a gas well
whose production during a three-month period is no more than 90 mcf
per day[, excluding gas flared pursuant to the rules of the
commission]. For purposes of qualifying a gas well, production per
well per day is determined by computing the average daily
production from the well using the monthly well production report
made to the commission.
SECTION 4. Sections 201.059(c), (d), and (e), Tax Code, are
amended to read as follows:
(c) An operator of a qualifying low-producing well is
entitled to a 25 percent credit on the tax otherwise due on gas
produced [and saved] from that well during a month if the average
taxable price of gas certified by the comptroller under Subsection
(b) for the previous three-month period is more than $3 per mcf but
not more than $3.50 per mcf.
(d) An operator of a qualifying low-producing well is
entitled to a 50 percent credit on the tax otherwise due on gas
produced [and saved] from that well during a month if the average
taxable price of gas certified by the comptroller under Subsection
(b) for the previous three-month period is more than $2.50 per mcf
but not more than $3 per mcf.
(e) An operator of a qualifying low-producing well is
entitled to a 100 percent credit on the tax otherwise due on gas
produced [and saved] from that well during a month if the average
taxable price of gas certified by the comptroller under Subsection
(b) for the previous three-month period is not more than $2.50 per
mcf.
SECTION 5. Section 201.201, Tax Code, is amended to read as
follows:
Sec. 201.201. TAX DUE. The tax imposed by this chapter for
gas produced [and saved] is due at the office of the comptroller in
Austin on the 20th day of the second month following the month of
production.
SECTION 6. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 7. This Act takes effect September 1, 2019.