By Brown                                        S.B. No. 1531

      75R6155 CBH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the imposition and rate of the gas severance tax.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 201.052(a), Tax Code, is amended to read

 1-5     as follows:

 1-6           (a)  The tax imposed by this chapter is at the rate of  6.9

 1-7     [7.5] percent of the market value of gas produced and saved in this

 1-8     state by the producer.

 1-9           SECTION 2.  Section 201.101, Tax Code, is amended to read as

1-10     follows:

1-11           Sec. 201.101.  MARKET VALUE.  The market value of gas is its

1-12     value at the mouth of the well from which it is produced without

1-13     deducting the costs of marketing the gas.

1-14           SECTION 3.  (a)  This Act takes effect September 1, 1997.

1-15           (b)  The change in law made by this Act does not affect taxes

1-16     imposed before the effective date of this Act, and the law in

1-17     effect before that  date is continued in effect for purposes of the

1-18     liability for and collection of those taxes.

1-19           SECTION 4.  The importance of this legislation and the

1-20     crowded condition of the calendars in both houses create an

1-21     emergency and an imperative public necessity that the

1-22     constitutional rule requiring bills to be read on three several

1-23     days in each house be suspended, and this rule is hereby suspended.