By Bivins S.B. No. 344
77R3199 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the rates of the gas and oil severance taxes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 201.052, Tax Code, is amended to read as
1-5 follows:
1-6 Sec. 201.052. RATE OF TAX. (a) Each month, the comptroller
1-7 shall certify the average closing cost of gas, as recorded on the
1-8 New York Mercantile Exchange (NYMEX), for the previous three
1-9 months. The comptroller shall publish certifications under this
1-10 subsection in the Texas Register. The tax imposed by this chapter
1-11 on gas produced and saved during a particular month is at the rate
1-12 of:
1-13 (1) 7.5 percent of the market value of gas produced
1-14 and saved in this state by the producer during that month if the
1-15 average closing price of gas certified by the comptroller for the
1-16 previous three-month period is more than $3 per MMBtu;
1-17 (2) five percent of the market value of gas produced
1-18 and saved in this state by the producer during that month if the
1-19 average closing price of gas certified by the comptroller for the
1-20 previous three-month period is equal to or more than $1.25 per
1-21 MMBtu, but not more than $3 per MMBtu; and
1-22 (3) two percent of the market value of gas produced
1-23 and saved in this state by the producer during that month if the
1-24 average closing price of gas certified by the comptroller for the
2-1 previous three-month period is less than $1.25 per MMBtu.
2-2 (b) The minimum tax rate on sweet and sour gas produced and
2-3 saved in this state is 121/1,500 of one cent for each 1,000 cubic
2-4 feet.
2-5 (c) If the tax is paid on gas at a higher rate than required
2-6 by Subsection (a), the person paying the tax is entitled to a
2-7 credit against taxes imposed by this chapter for the amount
2-8 overpaid. To receive the credit, the person must apply to the
2-9 comptroller for the credit not later than the expiration of the
2-10 applicable period for filing a tax refund under Section 111.104.
2-11 SECTION 2. Section 202.052, Tax Code, is amended to read as
2-12 follows:
2-13 Sec. 202.052. RATE OF TAX. (a) Each month, the comptroller
2-14 shall certify the average closing cost of West Texas Intermediate
2-15 crude oil, as recorded on the New York Mercantile Exchange (NYMEX),
2-16 for the previous three months. The comptroller shall publish
2-17 certifications under this subsection in the Texas Register. The
2-18 tax imposed by this chapter on oil produced in this state during a
2-19 particular month is at the rate of:
2-20 (1) 4.6 percent of the market value of oil produced in
2-21 this state during that month if the average closing price of West
2-22 Texas Intermediate crude oil certified by the comptroller for the
2-23 previous three-month period is more than $20 per barrel, or 4.6
2-24 cents for each barrel of 42 standard gallons of oil produced in
2-25 this state during that month, whichever rate results in the greater
2-26 amount of tax;
2-27 (2) 2.3 percent of the market value of oil produced in
3-1 this state during that month if the average closing price of West
3-2 Texas Intermediate crude oil certified by the comptroller for the
3-3 previous three-month period is equal to or more than $12, but not
3-4 more than $20 per barrel, or 2.3 cents for each barrel of 42
3-5 standard gallons of oil produced in this state during that month,
3-6 whichever rate results in the greater amount of tax; and
3-7 (3) one percent of the market value of oil produced in
3-8 this state during that month if the average closing price of West
3-9 Texas Intermediate crude oil certified by the comptroller for the
3-10 previous three-month period is less than $12, or one cent for each
3-11 barrel of 42 standard gallons of oil produced in this state during
3-12 that month, whichever rate results in the greater amount of tax.
3-13 (b) For oil produced in this state from a new or expanded
3-14 enhanced recovery project that qualifies under Section 202.054 of
3-15 this code, the rate of the tax imposed by this chapter is one-half
3-16 of the applicable rate prescribed by Subsection (a) [2.3 percent of
3-17 the market value of the oil].
3-18 (c) The exemptions described by Sections 202.056 and 202.059
3-19 apply to oil produced in this state from a well that qualifies
3-20 under Section 202.056 or 202.059, subject to the certifications and
3-21 approvals required by those sections.
3-22 (d) If the tax is paid on oil at a higher rate than required
3-23 by Subsection (a) or (b), the person paying the tax is entitled to
3-24 a credit against taxes imposed by this chapter for the amount
3-25 overpaid. To receive the credit, the person must apply to the
3-26 comptroller for the credit not later than the expiration of the
3-27 applicable period for filing a tax refund under Section 111.104.
4-1 SECTION 3. (a) This Act takes effect September 1, 2001, and
4-2 applies to gas and oil produced on or after that date. Gas and oil
4-3 produced before the effective date of this Act are governed by the
4-4 law in effect when the gas and oil were produced, and that law is
4-5 continued in effect for that purpose.
4-6 (b) As soon as practicable after the effective date of this
4-7 Act, the comptroller shall perform the initial certification
4-8 determination required by Sections 201.052 and 202.052, Tax Code,
4-9 as amended by this Act. The initial certification determination
4-10 must cover the three-month period beginning on June 1, 2001.
4-11 (c) The change in law made by this Act does not affect tax
4-12 liability accruing before the effective date of this Act. That
4-13 liability continues in effect as if this Act had not been enacted,
4-14 and the former law is continued in effect for the collection of
4-15 taxes due and for civil and criminal enforcement of the liability
4-16 for those taxes.