| 1 | 1 | | By: Seliger S.B. No. 214 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to funding for the economic stabilization fund, including |
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| 7 | 7 | | the rates of severance taxes on oil and gas production. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 201.052, Tax Code, is amended by |
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| 10 | 10 | | amending Subsection (a) and adding Subsection (b) to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | (a) Except as provided by Subsection (b), the [The] tax |
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| 13 | 13 | | imposed by this chapter is at the rate of 7.5 percent of the market |
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| 14 | 14 | | value of gas produced and saved in this state by the producer. |
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| 15 | 15 | | (b) The rate of tax on gas production described by |
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| 16 | 16 | | Subsection (a) is subject to Section 49-g(c-6), Article III, Texas |
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| 17 | 17 | | Constitution. |
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| 18 | 18 | | SECTION 2. Section 202.052, Tax Code, is amended by |
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| 19 | 19 | | amending Subsections (a) and (b) and adding Subsection (d) to read |
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| 20 | 20 | | as follows: |
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| 21 | 21 | | (a) Except as provided by Subsection (d), the [The] tax |
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| 22 | 22 | | imposed by this chapter is at the rate of 4.6 percent of the market |
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| 23 | 23 | | value of oil produced in this state or 4.6 cents for each barrel of |
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| 24 | 24 | | 42 standard gallons of oil produced in this state, whichever rate |
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| 25 | 25 | | results in the greater amount of tax. |
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| 26 | 26 | | (b) Except as provided by Subsection (d), for [For] oil |
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| 27 | 27 | | produced in this state from a new or expanded enhanced recovery |
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| 28 | 28 | | project that qualifies under Section 202.054 of this code, the rate |
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| 29 | 29 | | of the tax imposed by this chapter is 2.3 percent of the market |
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| 30 | 30 | | value of the oil. |
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| 31 | 31 | | (d) The rates of tax on oil production described by |
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| 32 | 32 | | Subsections (a) and (b) are subject to Section 49-g(c-5), Article |
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| 33 | 33 | | III, Texas Constitution. |
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| 34 | 34 | | SECTION 3. The heading to Subchapter H, Chapter 316, |
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| 35 | 35 | | Government Code, is amended to read as follows: |
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| 36 | 36 | | SUBCHAPTER H. STATE HIGHWAY [PRESERVATION OF SUFFICIENT BALANCE |
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| 37 | 37 | | IN ECONOMIC STABILIZATION] FUND |
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| 38 | 38 | | SECTION 4. Section 404.0241(c), Government Code, is amended |
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| 39 | 39 | | to read as follows: |
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| 40 | 40 | | (c) The comptroller shall include the fair market value of |
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| 41 | 41 | | the investment portfolio of the economic stabilization fund in |
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| 42 | 42 | | calculating the amount in the fund for purposes of Section 49-g(g), |
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| 43 | 43 | | Article III, Texas Constitution[, and Section 316.093 of this |
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| 44 | 44 | | code]. |
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| 45 | 45 | | SECTION 5. The following provisions of the Government Code |
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| 46 | 46 | | are repealed: |
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| 47 | 47 | | (1) Sections 316.091, 316.092, and 316.093; and |
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| 48 | 48 | | (2) Sections 404.0241(a) and (d). |
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| 49 | 49 | | SECTION 6. This Act takes effect January 1, 2020, but only |
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| 50 | 50 | | if the constitutional amendment proposed by the 86th Legislature, |
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| 51 | 51 | | Regular Session, 2019, providing for foregoing the transfer of oil |
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| 52 | 52 | | and gas production tax revenue to the economic stabilization fund |
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| 53 | 53 | | if the ending fund balance for the preceding fiscal year is greater |
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| 54 | 54 | | than $5 billion and for reducing the rates of oil and gas production |
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| 55 | 55 | | taxes by amounts sufficient to equal the foregone transfer is |
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| 56 | 56 | | approved by the voters. If that amendment is not approved by the |
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| 57 | 57 | | voters, this Act has no effect. |
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