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A BILL TO BE ENTITLED
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AN ACT
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relating to eligibility for the tax reduction for certain high-cost |
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gas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 201.057, Tax Code, is amended by adding |
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Subsections (e-1) and (e-2) to read as follows: |
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(e-1) Each month, the commission shall certify the average |
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closing price of gas during the previous three months based on |
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various price indices available to producers. The commission |
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shall publish certifications under this subsection in the Texas |
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Register. Notwithstanding any other provision of this section, the |
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commission may not certify that gas is high-cost gas for purposes of |
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this section during any month that the average closing price of gas |
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certified by the commission for the previous three-month period is |
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more than $6.50 per mcf. If the price is later $6.50 per mcf or less, |
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any drilling and completion costs incurred during a month when the |
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price exceeds $6.50 per mcf are excluded from the calculation of the |
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cumulative value of the exemption under Subsection (c). |
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(e-2) If the commission does not certify the gas as |
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high-cost gas under Subsection (e-1), the comptroller shall |
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determine the additional revenue from the tax imposed under this |
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chapter that is attributable to the gas not being certified. After |
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deducting the amount required by Section 201.403, the comptroller |
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shall deposit that revenue to the credit of the foundation school |
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fund. Section 201.404 does not apply to revenue deposited under |
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this subsection. |
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SECTION 2. The Railroad Commission of Texas shall publish |
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the initial certification required by Section 201.057(e-1), Tax |
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Code, as added by this Act, not later than October 15, 2011. |
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SECTION 3. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect on the 91st day after the last day of the |
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legislative session. |