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A BILL TO BE ENTITLED
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AN ACT
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relating to funding for the economic stabilization fund, including |
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the rates of severance taxes on oil and gas production. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 201.052, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (b) to read as |
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follows: |
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(a) Except as provided by Subsection (b), the [The] tax |
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imposed by this chapter is at the rate of 7.5 percent of the market |
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value of gas produced and saved in this state by the producer. |
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(b) The rate of tax on gas production described by |
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Subsection (a) is subject to Section 49-g(c-6), Article III, Texas |
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Constitution. |
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SECTION 2. Section 202.052, Tax Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (d) to read |
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as follows: |
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(a) Except as provided by Subsection (d), the [The] tax |
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imposed by this chapter is at the rate of 4.6 percent of the market |
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value of oil produced in this state or 4.6 cents for each barrel of |
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42 standard gallons of oil produced in this state, whichever rate |
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results in the greater amount of tax. |
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(b) Except as provided by Subsection (d), for [For] oil |
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produced in this state from a new or expanded enhanced recovery |
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project that qualifies under Section 202.054 of this code, the rate |
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of the tax imposed by this chapter is 2.3 percent of the market |
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value of the oil. |
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(d) The rates of tax on oil production described by |
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Subsections (a) and (b) are subject to Section 49-g(c-5), Article |
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III, Texas Constitution. |
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SECTION 3. The heading to Subchapter H, Chapter 316, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER H. STATE HIGHWAY [PRESERVATION OF SUFFICIENT BALANCE
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IN ECONOMIC STABILIZATION] FUND |
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SECTION 4. Section 404.0241(c), Government Code, is amended |
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to read as follows: |
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(c) The comptroller shall include the fair market value of |
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the investment portfolio of the economic stabilization fund in |
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calculating the amount in the fund for purposes of Section 49-g(g), |
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Article III, Texas Constitution[, and Section 316.093 of this
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code]. |
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SECTION 5. The following provisions of the Government Code |
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are repealed: |
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(1) Sections 316.091, 316.092, and 316.093; and |
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(2) Sections 404.0241(a) and (d). |
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SECTION 6. This Act takes effect January 1, 2020, but only |
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if the constitutional amendment proposed by the 86th Legislature, |
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Regular Session, 2019, providing for foregoing the transfer of oil |
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and gas production tax revenue to the economic stabilization fund |
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if the ending fund balance for the preceding fiscal year is greater |
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than $5 billion and for reducing the rates of oil and gas production |
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taxes by amounts sufficient to equal the foregone transfer is |
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approved by the voters. If that amendment is not approved by the |
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voters, this Act has no effect. |