By: Earley H.B. No. 2624
73R5885 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the taxation of certain natural resources.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle I, Title 2, Tax Code, is amended by
1-5 adding Chapter 204 to read as follows:
1-6 CHAPTER 204. COAL AND LIGNITE
1-7 SUBCHAPTER A. TAX IMPOSED
1-8 Sec. 204.001. Definitions. In this chapter:
1-9 (1) "Coal" includes lignite.
1-10 (2) "Lignite" means coal commonly referred to as brown
1-11 coal, of intermediate grade between peat and bituminous coal.
1-12 (3) "Producer" means a person who owns, controls,
1-13 manages, leases, or operates a lignite or coal mine or produces
1-14 lignite or coal by gasification or other in situ process or any
1-15 other method, system, or manner.
1-16 Sec. 204.002. TAX IMPOSED. A tax is imposed on each
1-17 producer of coal.
1-18 Sec. 204.003. RATE OF TAX. The tax imposed by this chapter
1-19 is at a rate of $1 for each ton of 2,000 pounds produced in this
1-20 state.
1-21 (Sections 204.004-204.050 reserved for expansion
1-22 SUBCHAPTER B. RECORDS, PAYMENTS, AND REPORTS
1-23 Sec. 204.051. Producer's Records. (a) A producer shall
1-24 keep a complete record of all coal that the producer produces in
2-1 this state. A producer is required to keep a record required by
2-2 this section only until the fourth anniversary of the date of the
2-3 last entry in the record.
2-4 (b) The record shall be open at all times to inspection by
2-5 the comptroller and the attorney general.
2-6 Sec. 204.052. Producer's Reports. (a) On the last day of
2-7 each January, April, July, and October each producer shall file a
2-8 report with the comptroller on forms prescribed by the comptroller.
2-9 The report must show the total amount of coal produced in the state
2-10 by the person during the calendar quarter next preceding the day
2-11 the report is due.
2-12 (b) A producer shall file other information or reports with
2-13 the comptroller that the comptroller requires.
2-14 (c) The report shall be signed by the person making the
2-15 report. If the person is not an individual, the report shall be
2-16 signed by the president, secretary, or other authorized officer.
2-17 Sec. 204.053. TAX DUE. The tax imposed by this chapter for
2-18 each quarter is due at the time that the report required by Section
2-19 204.052 is required to be filed for the quarter. Payment shall be
2-20 to the comptroller.
2-21 (Sections 204.054-204.100 reserved for expansion
2-22 SUBCHAPTER C. ENFORCEMENT AND PENALTIES
2-23 Sec. 204.101. Delinquent Tax Penalty. (a) A producer who
2-24 fails to file a report as required by this chapter or who fails to
2-25 pay the tax imposed by this chapter when due forfeits five percent
2-26 of the amount due as a penalty, and if the producer fails to file
2-27 the report or pay the tax on or before the 30th day after the date
3-1 on which the tax or report is due, the producer forfeits an
3-2 additional five percent.
3-3 (b) The minimum penalty under this section is $10.
3-4 (c) The attorney general, or a district or county attorney
3-5 at the direction of the attorney general, shall bring suit in the
3-6 name of the state to recover a delinquent tax imposed by this
3-7 chapter and penalties and interest that have accrued from failure
3-8 to pay the tax.
3-9 Sec. 204.102. Failure to Keep Records; Penalty. (a) A
3-10 person who fails to keep a record that the person is required by
3-11 this chapter to keep shall forfeit to the state a penalty of not
3-12 less than $500 nor more than $5,000.
3-13 (b) A person is subject to a separate penalty for each 10
3-14 days that the person fails to keep a record that the person is
3-15 required by this chapter to keep.
3-16 (Sections 204.103-204.150 reserved for expansion
3-17 SUBCHAPTER D. CLASSIFICATION OF TAX
3-18 AND ALLOCATION OF REVENUE
3-19 Sec. 204.151. OCCUPATION TAX. The tax imposed by this
3-20 chapter is an occupation tax.
3-21 Sec. 204.152. TAX SET ASIDE. One-half of one percent of the
3-22 tax collected under this chapter shall be deposited in the state
3-23 treasury for the use of the comptroller to administer and enforce
3-24 the provisions of this chapter, to be expended in the amounts and
3-25 for the purposes prescribed by the General Appropriations Act.
3-26 Money deposited under this section that is not spent at the end of
3-27 a fiscal year reverts proportionally to the other funds to which
4-1 the tax imposed by this chapter is paid.
4-2 Sec. 204.153. ALLOCATION OF REVENUE. After deducting the
4-3 amount required to be deposited by Section 204.152, the comptroller
4-4 shall deposit one-fourth of the revenue collected from the tax
4-5 imposed by this chapter to the credit of the foundation school fund
4-6 and three-fourths to the general revenue fund.
4-7 SECTION 2. Section 201.001, Tax Code, is amended by adding
4-8 Subdivision (11) to read as follows:
4-9 (11) "Completion date" means the date on which a well
4-10 is actually made capable of producing gas, as shown on the
4-11 completion report filed with the Railroad Commission of Texas.
4-12 SECTION 3. Section 201.052, Tax Code, is amended by amending
4-13 Subsection (a) and adding Subsection (c) to read as follows:
4-14 (a) Except as provided by Subsection (c), the <The> tax
4-15 imposed by this chapter is at the rate of 7.5 percent of the market
4-16 value of gas produced and saved in this state by the producer.
4-17 (c) For gas produced and saved by the producer from a well
4-18 that has a completion date on or after September 1, 1993, the tax
4-19 imposed by this chapter is at the rate of 4.6 percent of the market
4-20 value of that gas.
4-21 SECTION 4. Section 201.054, Tax Code, is amended by amending
4-22 Subsection (b) and adding Subsection (c) to read as follows:
4-23 (b) Except as provided by Subsection (c), the <The> rate of
4-24 the tax imposed by this section is the same as the rate of the tax
4-25 imposed by Section 201.052(a) <201.052 of this code>.
4-26 (c) For liquid hydrocarbons, other than condensate,
4-27 recovered from gas produced in this state by the producer from a
5-1 well that has a completion date on or after September 1, 1993, the
5-2 rate of the tax imposed by this section is the same as the rate
5-3 imposed by Section 201.052(c).
5-4 SECTION 5. This Act takes effect September 1, 1993, except
5-5 that Chapter 204, Tax Code, as added by this Act, takes effect
5-6 January 1, 1994.
5-7 SECTION 6. The importance of this legislation and the
5-8 crowded condition of the calendars in both houses create an
5-9 emergency and an imperative public necessity that the
5-10 constitutional rule requiring bills to be read on three several
5-11 days in each house be suspended, and this rule is hereby suspended.