87R145 SMT-F
  By: Hinojosa H.B. No. 878
  relating to phasing out the tax reduction for certain high-cost
         SECTION 1.  Section 201.057(f), Tax Code, is amended to read
  as follows:
         (f)  To qualify for the tax reduction provided by this
  section, the person responsible for paying the tax must apply to the
  comptroller. Notwithstanding any other provision of this section,
  the application must be filed with the comptroller before September
  1, 2021.  The application must contain the certification of the
  commission that the well produces high-cost gas and must contain a
  report of drilling and completion costs incurred for each well on a
  form and in the detail as determined by the comptroller.  Drilling
  and completion costs for a recompletion shall only include current
  and contemporaneous costs associated with the
  recompletion.  Notwithstanding any other provision of this
  section, to obtain the maximum tax reduction, an application to the
  comptroller for certification according to Subsection (a)(2) must
  be filed with the comptroller before September 1, 2021, and at the
  later of the 180th day after the date of first production or the
  45th day after the date of approval by the commission.  If the
  application is not filed by the applicable deadline to obtain the
  maximum tax reduction but is filed before September 1, 2021, the tax
  reduction is reduced by 10 percent for the period beginning on the
  180th day after the first day of production and ending on the date
  on which the application is filed with the comptroller.  The
  comptroller shall approve the application of a person who
  demonstrates that the gas is eligible for the tax reduction.  The
  comptroller may require a person applying for the tax reduction to
  provide any relevant information in the person's monthly report
  that the comptroller considers necessary to administer this
  section.  The commission shall notify the comptroller in writing
  immediately if it determines that a well previously certified as
  producing high-cost gas does not produce high-cost gas or if it
  takes any action or discovers any information that affects the
  eligibility of gas for a tax reduction under this section.
         SECTION 2.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act.  That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.