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A BILL TO BE ENTITLED
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AN ACT
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relating to the appraisal for ad valorem tax purposes of a real |
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property interest in oil or gas in place. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 two calendar years [year multiplied by a market
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condition factor] as the price at which the oil or gas produced from |
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the interest is projected to be sold in each calendar [the current] |
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year of the appraisal. The average price for the preceding two |
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calendar years [year] is calculated by dividing the sum of the |
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monthly average prices for which oil and gas from the interest was |
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selling during each month of the preceding two calendar years |
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[year] by 24 [12]. If there was no production of oil or gas from |
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the interest during any month of the preceding two calendar years |
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[year], the average price for which similar oil and gas from |
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comparable interests was selling during that month is to be |
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used. [The comptroller shall calculate the market condition
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factor by dividing the comptroller's current calendar year
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statewide average price for oil or gas, as applicable, forecasted
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for revenue estimating purposes by the preceding calendar year
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actual statewide average price for oil or gas, as applicable.] For |
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purposes of this section [calculating the market condition factor], |
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"price" means the market value of oil or gas as determined under |
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Subchapter C, Chapter 201, or Section 202.053, as applicable. The |
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comptroller shall calculate the preceding two calendar years [year] |
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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 |
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be used for ad valorem tax appraisal purposes [concurrently with
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the 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]. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2012. |