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A BILL TO BE ENTITLED
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AN ACT
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relating to the elimination of the tax exemption or reduction for |
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certain high-cost 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(f), Tax Code, is amended to read |
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as follows: |
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(f) To qualify for the exemption or tax reduction provided |
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by this section, the person responsible for paying the tax must |
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apply to the comptroller. Notwithstanding any other provision of |
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this section, the application must be filed with the comptroller |
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before October 1, 2011. The application must contain the |
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certification of the commission that the well produces high-cost |
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gas and, if the application is for a well spudded or completed after |
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September 1, 1995, must contain a report of drilling and completion |
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costs incurred for each well on a form and in the detail as |
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determined by the comptroller. Drilling and completion costs for a |
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recompletion shall only include current and contemporaneous costs |
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associated with the recompletion. Notwithstanding any other |
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provision of this section, to obtain the maximum tax exemption or |
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tax deduction, an application to the comptroller for certification |
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according to Subsection (a)(2)(A) must be filed with the |
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comptroller before October 1, 2011, and at the later of the 180th |
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day after the date of first production or the 45th day after the |
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date of approval by the commission. If the application is not filed |
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by the applicable deadline to obtain the maximum tax exemption or |
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tax deduction but is filed before October 1, 2011, the tax exemption |
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or tax deduction is reduced by 10 percent for the period beginning |
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on the 180th day after the first day of production and ending on the |
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date on which the application is filed with the comptroller. An |
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application to the comptroller for certification according to |
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Subsection (a)(2)(B) may not be filed before January 1, 1990, or |
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after December 31, 1998. The comptroller shall approve the |
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application of a person who demonstrates that the gas is eligible |
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for the exemption or tax reduction. The comptroller may require a |
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person applying for the exemption or tax reduction to provide any |
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relevant information in the person's monthly report that the |
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comptroller considers necessary to administer this section. The |
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commission shall notify the comptroller in writing immediately if |
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it determines that an oil or gas well previously certified as |
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producing high-cost gas does not produce high-cost gas or if it |
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takes any action or discovers any information that affects the |
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eligibility of gas for an exemption or tax reduction under this |
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section. |
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SECTION 2. The comptroller of public accounts shall deposit |
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to the credit of the foundation school fund any revenue received |
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during the state fiscal biennium beginning September 1, 2011, that |
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is generated by the change made by this Act to Section 201.057, Tax |
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Code. |
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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. |