SRC-PNG S.B. 329 76(R)BILL ANALYSIS


Senate Research CenterS.B. 329
76R237 CBH-DBy: Haywood
Natural Resources
4/28/1999
Committee Report (Amended)


DIGEST 

Currently, under Texas law, during odd-numbered years, oil and gas
operators must pay their estimated July taxes on August 15th, rather than
at the end of the standard grace period on September 1st, in order for the
legislature to appropriate the funds for the upcoming biennium.  This bill
would eliminate the early payment of estimated taxes in odd numbered years
for oil and gas operators. 

PURPOSE

As proposed, S.B. 329 eliminates the early payment of estimated taxes in
odd numbered years for oil and gas operators. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Repealers: 

 (1) Section 153.118(e), Tax Code (regarding gasoline tax reports);
    (2) Section 153.221(e), Tax Code (regarding diesel fuel tax reports);
   (3) Section 201.2015, Tax Code (regarding gas production estimated tax
payments); and 
  (4) Section 202.1515, Tax Code (regarding oil production estimated tax
payments). 
 
SECTION 2. Amends Section 201.203(b), Tax Code, to delete text requiring a
penalty, if a producer fails to remit a reasonable estimate of tax due, of
10 percent of the delinquent estimate tax due. 

SECTION 3. Amends Section 201.2035(b), Tax Code, to delete text requiring a
penalty, if a purchaser fails to remit a reasonable estimate of tax due, of
10 percent of the delinquent estimate tax due. 

SECTION 4. Amends Section 202.201(b), Tax Code, to delete text requiring a
penalty, if a producer fails to remit a reasonable estimate of tax due, of
10 percent of the delinquent estimate tax due. 

SECTION 5. Amends Section 202.202(b), Tax Code, to delete text requiring a
penalty, if a first purchaser fails to remit a reasonable estimate of tax
due, of 10 percent of the delinquent estimate tax due. 

SECTION 6. Effective date: September 1, 2001.
  Makes application of this Act prospective.

SECTION 7. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 6. 

Effective date: September 1, 2001, rather than September 1, 1999.