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AN ACT
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relating to the ad valorem tax appraisal of oil or gas interests. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) Section 21.02(e), Tax Code, is amended to |
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read as follows: |
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(e) In this subsection, "portable drilling rig" includes |
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equipment associated with the drilling rig. A portable drilling |
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rig designed for land-based oil or gas drilling or exploration |
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operations is taxable by each [the] taxing unit in which the rig is |
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located on January 1 if the rig was located in the appraisal |
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district that appraises property for the unit for the preceding 365 |
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consecutive days. If the drilling rig was not located in the |
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appraisal district where it is located on January 1 for the |
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preceding 365 days, it is taxable by each [the] taxing unit in which |
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the owner's principal place of business in this state is located on |
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January 1, unless the owner renders the rig under Chapter 22 to the |
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appraisal district in which the rig is located on January 1, in |
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which event the rig is taxable by each taxing unit in which the rig |
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is located on January 1. If an owner elects to render any portable |
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drilling rig to the appraisal district in which the rig is located |
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on January 1 when the rig otherwise would be taxable at the owner's |
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principal place of business in this state, all the owner's portable |
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drilling rigs are taxable by the taxing units in which each rig is |
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located on January 1. Notwithstanding any other provision of this |
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subsection, if the owner of a portable drilling rig does not have a |
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place of business in this state, the rig is taxable by each taxing |
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unit in which the rig is located on January 1. |
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(b) Subsection (a) of this section applies only to a tax |
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year that begins on or after the effective date of this section. |
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(c) This section takes effect January 1, 2008. |
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SECTION 2. Section 23.175(a), Tax Code, is amended to read |
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as follows: |
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(a) If a real property interest in oil or gas in place is |
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appraised by a method that takes into account the future income from |
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the sale of oil or gas to be produced from the interest, the method |
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must use the average price of the oil or gas from the interest for |
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the preceding calendar year multiplied by a market condition factor |
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as the price at which the oil or gas produced from the interest is |
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projected to be sold in the current year of the appraisal. The |
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average price for the preceding calendar year is calculated by |
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dividing the sum of the monthly average prices for which oil and gas |
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from the interest was selling during [on] each month [day] of the |
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preceding calendar year[, excluding February 29,] by 12 [365]. If |
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there was no production of oil or gas from the interest [on any day] |
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during any month of the preceding calendar year, the average price |
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for which similar oil and gas from comparable interests was selling |
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during that month [on that day] is to be used. The comptroller |
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shall calculate the market condition factor by dividing the |
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comptroller's current calendar year statewide average price for oil |
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or gas, as applicable, forecasted for revenue estimating purposes |
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by the preceding calendar year actual statewide average price for |
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oil or gas, as applicable. For purposes of calculating the market |
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condition factor, "price" means the market value of oil or gas as |
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determined under Subchapter C, Chapter 201, or Section 202.053, as |
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applicable. The comptroller shall calculate the preceding calendar |
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year actual statewide average prices for oil and gas and the market |
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condition factors for oil and gas and publish that information to be |
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used for ad valorem tax appraisal purposes concurrently with the |
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current calendar year statewide average prices for oil and gas |
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forecasted for revenue estimating purposes. The price for the |
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interest used in the second or a subsequent calendar year of the |
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appraisal shall reflect the same percentage rate increase or |
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decrease in the price for oil or gas, as applicable, as projected |
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for that calendar year by the comptroller for revenue estimating |
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purposes. [If market conditions warrant, the average price from the
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preceding year may be increased or decreased in the second and/or
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succeeding years of an appraisal that takes into account the future
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income from the sale of oil or gas to be produced from the interest.
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If the average price from the preceding year is increased in the
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second or any succeeding year of an appraisal that takes into
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account the future income from the sale of oil or gas from the
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interest, the annual percentage rate of increase may be no greater
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than the annual percentage rate increase projected for that year by
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the comptroller for revenue estimating purposes; however, in no
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event may the price used in the second or any succeeding year of an
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appraisal exceed 150 percent of the price used in the current year
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of the appraisal. The price used in the current year may be
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decreased by any amount in the second and succeeding year of an
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appraisal.] |
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SECTION 3. (a) Section 162.227, Tax Code, is amended by |
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adding Subsection (c-1) to read as follows: |
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(c-1) A license holder may take a credit on a return for the |
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period in which the purchase occurred, and a person who does not |
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hold a license may file a refund claim with the comptroller, if: |
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(1) the license holder or person paid tax on diesel |
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fuel; |
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(2) the diesel fuel is used in this state by movable |
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specialized equipment used in oil field well servicing; and |
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(3) the person who purchased the diesel fuel has |
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received or is eligible to receive a federal diesel fuel tax refund |
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under the Internal Revenue Code of 1986 for the diesel fuel used by |
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movable specialized equipment used in oil field well servicing. |
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(b) This section takes effect September 1, 2007. |
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SECTION 4. Sections 201.059(g) and 202.058(h), Tax Code, |
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are repealed. |
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SECTION 5. This Act applies only to the appraisal of |
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property for ad valorem tax purposes for a tax year beginning on or |
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after the effective date of this Act. |
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SECTION 6. Except as otherwise provided by this Act, this |
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Act takes effect January 1, 2008. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2982 was passed by the House on May |
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10, 2007, by the following vote: Yeas 143, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2982 on May 25, 2007, by the following vote: Yeas 141, Nays 0, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2982 was passed by the Senate, with |
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amendments, on May 23, 2007, by the following vote: Yeas 30, Nays |
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0, 1 present, not voting. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |