Texas 2021 - 87th Regular

Texas House Bill HB1377 Compare Versions

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

Old	New	Differences
1	1	87R2417 BEF-D
2	2	By: González of Dallas H.B. No. 1377
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 greater of the monthly
35	35	production from the well as reported in the monthly well production
36	36	reports made to the commission and the monthly production from the
37	37	well as reported in the producer's reports made to the comptroller
38	38	under Section 201.203, including any amendments to those reports.
39	39	SECTION 4. Sections 201.059(c), (d), and (e), Tax Code, are
40	40	amended to read as follows:
41	41	(c) An operator of a qualifying low-producing well is
42	42	entitled to a 25 percent credit on the tax otherwise due on gas
43	43	produced [and saved] from that well during a month if the average
44	44	taxable price of gas certified by the comptroller under Subsection
45	45	(b) for the previous three-month period is more than $3 per mcf but
46	46	not more than $3.50 per mcf.
47	47	(d) An operator of a qualifying low-producing well is
48	48	entitled to a 50 percent credit on the tax otherwise due on gas
49	49	produced [and saved] from that well during a month if the average
50	50	taxable price of gas certified by the comptroller under Subsection
51	51	(b) for the previous three-month period is more than $2.50 per mcf
52	52	but not more than $3 per mcf.
53	53	(e) An operator of a qualifying low-producing well is
54	54	entitled to a 100 percent credit on the tax otherwise due on gas
55	55	produced [and saved] from that well during a month if the average
56	56	taxable price of gas certified by the comptroller under Subsection
57	57	(b) for the previous three-month period is not more than $2.50 per
58	58	mcf.
59	59	SECTION 5. Section 201.201, Tax Code, is amended to read as
60	60	follows:
61	61	Sec. 201.201. TAX DUE. The tax imposed by this chapter for
62	62	gas produced [and saved] is due at the office of the comptroller in
63	63	Austin on the 20th day of the second month following the month of
64	64	production.
65	65	SECTION 6. The change in law made by this Act does not
66	66	affect tax liability accruing before the effective date of this
67	67	Act. That liability continues in effect as if this Act had not been
68	68	enacted, and the former law is continued in effect for the
69	69	collection of taxes due and for civil and criminal enforcement of
70	70	the liability for those taxes.
71	71	SECTION 7. This Act takes effect September 1, 2021.