86R216 ADM-D
By: White H.B. No. 42
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.404, Tax Code, is amended to read as
follows:
Sec. 201.404. ALLOCATION OF REVENUE. After deducting the
amount required to be deposited by Section 201.403 [of this code],
the comptroller shall deposit [one-fourth of] the revenue collected
from the tax imposed by this chapter as follows:
(1) 25 percent to the credit of the foundation school
fund;
(2) two percent to the credit of the trust fund created
under Section 205.001, to be disbursed to counties for the purposes
and in the manner provided by that section; and
(3) the remainder [three-fourths] to the general
revenue fund.
SECTION 2. Section 202.353, Tax Code, is amended to read as
follows:
Sec. 202.353. ALLOCATION OF REVENUE. After deducting the
amount required to be deposited by Section 202.352 [of this code],
the comptroller shall deposit [one-fourth of] the revenue collected
from the tax imposed by this chapter as follows:
(1) 25 percent to the credit of the foundation school
fund;
(2) two percent to the credit of the trust fund created
under Section 205.001, to be disbursed to counties for the purposes
and in the manner provided by that section; and
(3) the remainder [three-fourths] to the general
revenue fund.
SECTION 3. Subtitle I, Title 2, Tax Code, is amended by
adding Chapter 205 to read as follows:
CHAPTER 205. SEVERANCE TAX TRUST FUND
Sec. 205.001. TRUST FUND FOR REVENUE FROM SEVERANCE TAXES
FOR COUNTIES. (a) The comptroller shall deposit the following in a
trust fund outside the state treasury to be held with the
comptroller in trust:
(1) the revenue collected from the gas production tax
as specified by Section 201.404(2); and
(2) the revenue collected from the oil production tax
as specified by Section 202.353(2).
(b) The comptroller shall:
(1) administer the fund as trustee on behalf of each
county in this state; and
(2) send to the county treasurer payable to the county
the county's share of the revenue in the trust fund as provided by
this section.
(c) A county's share of the revenue in the trust fund is
equal to the proportion that the gas production and oil production
in that county bears to the total gas production and oil production
in this state.
(d) The comptroller shall remit to a county the county's
share of the revenue in the trust fund not later than the 90th day
after the last day of the calendar month during which the revenue
was deposited in the trust fund.
(e) A county may use money received under this section only
to supplement construction and maintenance of county roads and
bridges that are impacted by oil and gas exploration and production
activities.
SECTION 4. The changes in law made by this Act apply only to
tax revenue collected under Chapters 201 and 202, Tax Code, from oil
and gas produced on or after the effective date of this Act. Tax
revenue collected under Chapters 201 and 202, Tax Code, from oil and
gas produced before that date is governed by the law in effect on
the date the oil and gas was produced, and that law is continued in
effect for that purpose.
SECTION 5. This Act takes effect September 1, 2021, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, authorizing the legislature to allocate a
portion of oil and gas production tax revenue to the counties from
which the oil and gas originated is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.