Amend HB 2914 by inserting the appropriately numbered
sections:
SECTION _____. Section 201.052, Tax Code, is amended to read
as follows:
Sec. 201.052. Rate of Tax. (a) Each month, the comptroller
shall certify the average closing cost of gas, as recorded on the
New York Mercantile Exchange (NYMEX), for the previous three
months. The comptroller shall publish certifications under this
subsection in the Texas Register. The tax imposed by this chapter
on gas produced and saved during a particular month is at the rate
of:
(1) 7.5 percent of the market value of gas produced
and saved in this state by the producer during that month if the
average closing price of gas certified by the comptroller for the
previous three-month period is more than $3 per MMBtu;
(2) five percent of the market value of gas produced
and saved in this state by the producer during that month if the
average closing price of gas certified by the comptroller for the
previous three-month period is equal to or more than $1.25 per
MMBtu but not more than $3 per MMBtu; and
(3) two percent of the market value of gas produced
and saved in this state by the producer during that month if the
average closing price of gas certified by the comptroller for the
previous three-month period is less than $1.25 per MMBtu.
(b) The minimum tax rate on sweet and sour gas produced and
saved in this state is 121/1,500 of one cent for each 1,000 cubic
feet.
(c) If the tax is paid on gas at a higher rate than required
by Subsection (a), the person paying the tax in entitled to a
credit against taxes imposed by this chapter for the amount
overpaid. To receive the credit, the person must apply to the
comptroller for the credit not later than the expiration of the
applicable period for filing a tax refund under Section 111.104.
SECTION _____. Subchapter B, Chapter 201, Tax Code, is
amended by adding Section 201.0525 to read as follows:
Sec. 201.0525. TAX CREDIT FOR CERTAIN TAX PAYMENTS. (a) A
person paying a tax under this chapter during the period beginning
on September 1, 2001, and ending on August 31, 2004, is entitled to
a credit against taxes imposed by this chapter in an amount equal
to the difference between:
(1) the amount of taxes the person paid under this
chapter during that period under the tax rates prescribed by
Section 201.052, as that section existed during that period; and
(2) the amount of taxes the person would have paid
under this chapter during that period under the tax rates
prescribed by Section 201.052, as that section exists on September
1, 2004.
(b) To receive the credit, the person must apply to the
comptroller for the credit on or after September 1, 2004, and not
later than the expiration of the applicable period for filing a tax
refund under Section 111.104.
SECTION _____. Section 202.052, Tax Code, is amended to read
as follows:
Sec. 202.052. RATE OF TAX. (a) Each month, the comptroller
shall certify the average closing cost of West Texas Intermediate
crude oil, as recorded on the New York Mercantile Exchange (NYMEX),
for the previous three months. The comptroller shall publish
certifications under this subsection in the Texas Register. The
tax imposed by this chapter on oil produced in this state during a
particular month is at the rate of:
(1) 4.6 percent of the market value of oil produced in
this state during that month if the average closing price of West
Texas Intermediate crude oil certified by the comptroller for the
previous three-month period is more than $20 per barrel, or 4.6
cents for each barrel of 42 standard gallons of oil produced in
this state during that month, whichever rate results in the greater
amount of tax;
(2) 2.3 percent of the market value of oil produced in
this state during that month if the average closing price of West
Texas Intermediate crude oil certified by the comptroller for the
previous three-month period is equal to or more than $12 but not
more than $20 per barrel, or 2.3 cents for each barrel of 42
standard gallons of oil produced in this state during that month,
whichever rate results in the greater amount of tax; and
(3) one percent of the market value of oil produced in
this state during that month if the average closing price of West
Texas Intermediate crude oil certified by the comptroller for the
previous three-month period is less than $12, or one cent for each
barrel of 42 standard gallons of oil produced in this state during
that month, whichever rate results in the greater amount of tax.
(b) For oil produced in this state from a new or expanded
enhanced recovery project that qualifies under Section 202.054 of
this code, the rate of the tax imposed by this chapter is one-half
of the applicable rate prescribed by Subsection (a) <2.3 percent of
the market value of the oil>.
(c) The exemptions described by Sections 202.056 and 202.059
apply to oil produced in this state from a well that qualifies
under Section 202.056 or 202.059, subject to the certifications and
approvals required by those sections.
(d) If the tax is paid on oil at a higher rate than required
by Subsection (a) or (b), the person paying the tax is entitled to
a credit against taxes imposed by this chapter for the amount
overpaid. To receive the credit, the person must apply to the
comptroller for the credit not later than the expiration of the
applicable period for filing a tax refund under Section 111.104.
SECTION _____. Subchapter B, Chapter 202, Tax Code, is
amended by adding Section 202.0525 to read as follows:
Sec. 202.0525. TAX CREDIT FOR CERTAIN TAX PAYMENTS. (a) A
person paying a tax under this chapter during the period beginning
on September 1, 2001, and ending on August 31, 2004, is entitled to
a credit against taxes imposed by this chapter in an amount equal
to the difference between:
(1) the amount of taxes the person paid under this
chapter during that period under the tax rates prescribed by
Section 202.052, as that section existed during that period; and
(2) the amount of taxes the person would have paid
under this chapter during that period under the tax rates
prescribed by Section 202.052, as that section exists on September
1, 2004.
(b) To receive the credit, the person must apply to the
comptroller for the credit on or after September 1, 2004, and not
later than the expiration of the applicable period for filing a tax
refund under Section 111.104.
SECTION _____. (a) Sections 1.01 through 1.04 of this Act
take effect September 1, 2004. This section takes effect September
1, 2001.
(b) Beginning September 1, 2001, the comptroller of public
accounts shall monitor market prices to determine the validity of
any credit applications submitted under Sections 201.0525 and
202.0525, Tax Code, as added by this Act.
(c) As soon as practicable after the effective date of
Sections 1.01 through 1.04 of this Act, the comptroller of public
accounts shall perform the initial certification determination
required by Sections 201.052 and 202.052, Tax Code, as amended by
this Act. The initial certification determination must cover the
three-month period beginning on June 1, 2004.
(d) The change in law made by Sections 1.01 through 1.04 of
this Act does not affect tax liability accruing before the
effective date of those sections. That liability continues in
effect as if Sections 1.01 through 1.04 of this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION _____. Section 201.052, Tax Code, is amended to read
as follows:
Sec. 201.052. RATE OF TAX. (a) The tax imposed by this
chapter is at the rate of 7.5 percent of the market value of gas
produced and saved in this state by the producer.
(b) The minimum tax rate on sweet and sour gas produced and
saved in this state is 121/1,500 of one cent for each 1,000 cubic
feet.
SECTION _____. Section 202.052, Tax Code, is amended to read
as follows:
Sec. 202.052. RATE OF TAX. (a) The tax imposed by this
chapter is at the rate of 4.6 percent of the market value of oil
produced in this state or 4.6 cents for each barrel of 42 standard
gallons of oil produced in this state, whichever rate results in
the greater amount of tax.
(b) For oil produced in this state from a new or expanded
enhanced recovery project that qualifies under Section 202.054 of
this code, the rate of the tax imposed by this Chapter is 2.3
percent of the market value of the oil.
(c) The exemptions described by Sections 202.056 and 202.059
apply to oil produced in this state from a well that qualifies
under Section 202.056 or 202.059, subject to the certifications and
approvals required by those sections.
SECTION _____. (a) This article takes effect September 1,
2006, and applies to gas and oil produced on or after that date.
Gas and oil produced before the effective date of this article are
governed by the law in effect when the gas and oil were produced,
and that law is continued in effect for that purpose.
(b) The change in law made by this article does not affect
tax liability accruing before the effective date of this article.
That liability continues in effect as if this article had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.