Texas 2019 - 86th Regular

Texas House Bill HB42

Caption

Relating to allocating a portion of oil and gas production tax revenue to the counties from which the oil and gas originated and to the use of that revenue.

Impact

The proposed changes to Texas tax code would ensure that counties receive a fair share of the taxes derived from oil and gas production within their jurisdictions. The bill mandates that 2% of the revenue collected from gas and oil production taxes be deposited into a trust fund for counties, which will be administered by the comptroller. Each county's share is determined by its proportional contribution to the state's total production. If approved, this could lead to enhanced funding for local projects that are directly affected by energy extraction activities, allowing for improvements in public safety and transportation infrastructure.

Summary

House Bill 42 is aimed at allocating a portion of oil and gas production tax revenue specifically to the counties from which the oil and gas originated. This legislation seeks to amend existing tax code sections related to revenue distribution, clearly outlining how the tax revenue generated from oil and gas should be managed. By establishing a new Severance Tax Trust Fund, the bill stipulates that funds collected will be used to support county infrastructure, particularly the construction and maintenance of roads and bridges impacted by oil and gas activities. This allocation emphasizes the importance of local funding for infrastructure development in resource-producing areas.

Contention

An important aspect of HB 42 is that its enactment hinges on voter approval of a constitutional amendment proposed earlier by the Texas Legislature. If this amendment does not pass, HB 42 will not take effect. Critics may argue that reliance on a voter-approved amendment for the bill's success introduces an element of uncertainty to the allocation of these essential funds. Proponents, however, highlight that empowering local governments with dedicated tax revenue for critical infrastructure projects addresses long-standing needs in communities that bear the brunt of energy extraction activities.

Companion Bills

TX HJR13

Enabling for Proposing a constitutional amendment authorizing the legislature to allocate a portion of oil and gas production tax revenue to the counties from which the oil and gas originated.

Previously Filed As

TX HB2207

Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, the oil and gas regulation and cleanup account, the Texas emissions reduction plan fund, the property tax relief fund, and the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund and to the permissible uses of money deposited to the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund.

TX HJR111

Proposing a constitutional amendment providing for the creation of the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund, dedicating the money in that fund to benefit areas of the state significantly affected by oil and gas production, and providing for the transfer of certain general revenues to that fund, the economic stabilization fund, the state highway fund, the oil and gas regulation and cleanup account, the Texas emissions reduction plan fund, and the property tax relief fund.

TX HJR27

Proposing a constitutional amendment providing for the creation of and use of money in the Grow Texas fund and allocating certain general revenues to that fund, the economic stabilization fund, and the state highway fund.

TX HB5105

Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

TX HB3461

Relating to the creation and re-creation of funds and accounts, the dedication and rededication of revenue and allocation of accrued interest on dedicated revenue, and the exemption of unappropriated money from use for general governmental purposes.

TX HB1034

Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

TX SB2345

Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

TX SB1244

Relating to the allocation of certain revenue to the sexual assault program fund.

TX SB1538

Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

TX HB4419

Relating to the promotion of film and television production in this state, including the eligibility of film or television productions for funding under the major events reimbursement program, the creation of a film events trust fund and a film production tax rebate trust fund, the establishment of virtual film production institutes, and the designation of media production development zones.

Similar Bills

No similar bills found.