By Haywood S.B. No. 1749
77R7529 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting certain gas used on the lease from the
1-3 production tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 201.053, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 201.053. GAS NOT TAXED. The tax imposed by this chapter
1-8 does not apply to gas:
1-9 (1) injected into the earth in this state, unless sold
1-10 for that purpose;
1-11 (2) produced from oil wells with oil and lawfully
1-12 vented or flared;
1-13 (3) used for lifting oil, unless sold for that
1-14 purpose; [or]
1-15 (4) produced in this state from a well that qualifies
1-16 under Section 202.056; or
1-17 (5) used on the lease for agricultural purposes or
1-18 purposes associated with agriculture, unless sold for that purpose.
1-19 SECTION 2. (a) This Act takes effect on the first day of the
1-20 calendar month following the month it receives a vote of two-thirds
1-21 of all the members elected to each house, as provided by Section
1-22 39, Article III, Texas Constitution. If this Act does not receive
1-23 the vote necessary for that effective date, this Act takes effect
1-24 September 1, 2001.
2-1 (b) The change in law made by this Act does not affect taxes
2-2 imposed before the effective date of this Act, and the law in
2-3 effect before the effective date of this Act is continued in effect
2-4 for purposes of the liability for and collection of those taxes.