By Wentworth                                          S.B. No. 1795
         76R7734 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the date on which severance taxes must be paid on
 1-3     certain oil.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 202.151, Tax Code, is amended to read as
 1-6     follows:
 1-7           Sec. 202.151.  TAX DUE.  (a)  The tax imposed by this chapter
 1-8     is due at the office of the comptroller on the 25th day of each
 1-9     calendar month for oil produced during the preceding calendar
1-10     month.
1-11           (b)  A producer may delay payment of the tax imposed by this
1-12     chapter on oil produced and not sold in the same month it is
1-13     produced if the producer has not sold the oil at the time the tax
1-14     is due under Subsection (a) and Section 202.154.   The producer may
1-15     delay payment on that oil until the earlier of the first date on
1-16     which taxes are due under Subsection (a) after the date the
1-17     producer sells the oil or for not more than 90 days.  The producer
1-18     must include on the report with which the tax would normally be
1-19     paid and on any applicable subsequent reports a statement that the
1-20     producer has not sold the oil and any other information the
1-21     comptroller requires by rule.
1-22           SECTION 2.  This Act takes effect September 1, 1999, and
1-23     applies only to oil produced on or after the effective date of this
1-24     Act.  Oil produced before the effective date of this Act is
 2-1     governed by the law in effect when the oil was produced, and that
 2-2     law is continued in effect for that purpose.