By Yarbrough H.B. No. 2692
74R5785 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition, administration, collection, and civil
1-3 and criminal enforcement of a tax on oil and natural gas refiners
1-4 and the use of the revenue generated from the tax for educational
1-5 enhancement.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Chapter 191, Tax Code, is amended by adding
1-8 Subchapter A to read as follows:
1-9 SUBCHAPTER A. REFINERS
1-10 Sec. 191.001. DEFINITIONS. In this subchapter:
1-11 (1) "Crude oil" means raw or unrefined petroleum as it
1-12 exists at the wellhead.
1-13 (2) "Cubic foot of gas" has the meaning assigned by
1-14 Section 86.002, Natural Resources Code.
1-15 (3) "Refinery" means an installation that performs the
1-16 process of refining, treating, preparing, or processing crude oil
1-17 or natural gas.
1-18 (4) "Refiner" means a person operating a refinery.
1-19 Sec. 191.002. TAX IMPOSED. There is imposed a tax on every
1-20 refiner engaged in business in this state by operating a refinery
1-21 located in this state.
1-22 Sec. 191.003. RATE OF TAX. (a) The tax on a refiner of
1-23 crude oil is imposed at the rate of .01 cents for each barrel of 42
1-24 standard gallons of crude oil consumed by each refinery for the
2-1 purpose of being refined.
2-2 (b) The tax on a refiner of natural gas is imposed at the
2-3 rate of .00167 cents for each 1,000 cubic feet of natural gas
2-4 consumed by each refinery for the purpose of being refined.
2-5 Sec. 191.004. PAYMENT OF TAX. Each refiner on or before the
2-6 25th day of each month shall send to the comptroller the amount of
2-7 tax due under this subchapter for the preceding month.
2-8 Sec. 191.005. REPORTS. (a) On or before the 25th day of
2-9 each month, each refiner shall file with the comptroller a report
2-10 showing the computation of the amount of tax imposed by this
2-11 subchapter on the refiner.
2-12 (b) The report must include:
2-13 (1) the total amount of crude oil and natural gas
2-14 consumed by the refiner for the preceding month at each refinery;
2-15 (2) the total amount of crude oil and natural gas
2-16 possessed by the refiner at the beginning of the preceding month;
2-17 (3) the amount and price of crude oil and natural gas
2-18 purchased by the refiner during the preceding month or other period
2-19 covered by the report;
2-20 (4) the amount of crude oil and natural gas sold or
2-21 distributed during the preceding month;
2-22 (5) the amount of crude oil and natural gas lost,
2-23 destroyed, or otherwise disposed of during the preceding month; and
2-24 (6) any other information required by the comptroller.
2-25 Sec. 191.006. RECORDS. Each refiner shall keep in Texas for
2-26 a period of two years a complete record of the amount of crude oil
2-27 and natural gas consumed and produced in this state by the refiner,
3-1 the names and addresses of all persons to whom crude oil and
3-2 natural gas consumed or produced in this state by the refiner are
3-3 sold, and any other information required by the comptroller.
3-4 Sec. 191.007. PENALTY FOR FAILURE TO PAY TAX. (a) A
3-5 refiner who fails to file a report as required by this subchapter
3-6 or pay the tax when due forfeits five percent of the amount due as
3-7 a penalty, and if the refiner fails to file the report or pay the
3-8 tax within 30 days after the day on which the tax or report is due,
3-9 the refiner forfeits an additional five percent.
3-10 (b) The minimum penalty imposed by this section is $1.
3-11 Sec. 191.008. CRIMINAL PENALTIES: REPORTS AND RECORDS. (a)
3-12 A refiner or agent, officer, or employee of a refiner commits an
3-13 offense if the refiner:
3-14 (1) knowingly fails to file a report required by this
3-15 subchapter or by the regulations of the comptroller issued for the
3-16 enforcement of this subchapter at the time required; or
3-17 (2) knowingly fails to make and keep any record
3-18 required by this subchapter or by a regulation of the comptroller
3-19 issued for the enforcement of this subchapter.
3-20 (b) An offense under this section is a Class C misdemeanor.
3-21 Sec. 191.009. PERMIT REQUIRED. A person subject to the tax
3-22 imposed by this subchapter shall acquire the permit required by
3-23 Section 182.086. Application, issuance, and suspension of the
3-24 permit are subject to Sections 182.087 and 182.088.
3-25 SECTION 2. Section 191.122, Tax Code, is amended to read as
3-26 follows:
3-27 Sec. 191.122. ALLOCATION OF TAX. (a) Except as provided by
4-1 Subsection (b), one-fourth <One-fourth> of the revenue collected
4-2 under this chapter shall be deposited to the credit of the
4-3 foundation school fund and three-fourths to the credit of the
4-4 general revenue fund.
4-5 (b) Revenue collected under Subchapter A from the tax on
4-6 refiners may be appropriated only for:
4-7 (1) increases in teacher salaries at public primary
4-8 and secondary schools in this state; and
4-9 (2) the equalization of funding among school districts
4-10 in this state.
4-11 SECTION 3. A person is not required to file a report under
4-12 Section 191.005, Tax Code, as added by this article, showing crude
4-13 oil or natural gas transactions that occur before September 1,
4-14 1995.
4-15 SECTION 4. Subchapter F, Chapter 191, Tax Code, is repealed.
4-16 SECTION 5. The importance of this legislation and the
4-17 crowded condition of the calendars in both houses create an
4-18 emergency and an imperative public necessity that the
4-19 constitutional rule requiring bills to be read on three several
4-20 days in each house be suspended, and this rule is hereby suspended.