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A BILL TO BE ENTITLED
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AN ACT
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relating to the repeal of the exemption from the severance tax for |
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flared or vented gas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 201.052(a), Tax Code, is amended to read |
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as follows: |
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(a) The tax imposed by this chapter is at the rate of 7.5 |
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percent of the market value of gas produced [and saved] in this |
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state by the producer. |
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SECTION 2. Section 201.053, Tax Code, is amended to read as |
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follows: |
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Sec. 201.053. GAS NOT TAXED. The tax imposed by this |
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chapter does not apply to gas: |
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(1) injected into the earth in this state, unless sold |
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for that purpose; |
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(2) [produced from oil wells with oil and lawfully |
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vented or flared; |
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[(3)] used for lifting oil, unless sold for that |
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purpose; or |
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(3) [(4)] produced in this state from a well that |
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qualifies under Section 202.056 or 202.060. |
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SECTION 3. Section 201.059(a)(3), Tax Code, is amended to |
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read as follows: |
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(3) "Qualifying low-producing well" means a gas well |
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whose production during a three-month period is no more than 90 mcf |
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per day [, excluding gas flared pursuant to the rules of the |
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commission]. For purposes of qualifying a gas well, production per |
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well per day is determined by computing the average daily |
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production from the well using the greater of the monthly |
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production from the well as reported in the monthly well production |
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reports made to the commission and the monthly production from the |
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well as reported in the producer's reports made to the comptroller |
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under Section 201.203, including any amendments to those reports. |
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SECTION 4. Sections 201.059(c), (d), and (e), Tax Code, are |
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amended to read as follows: |
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(c) An operator of a qualifying low-producing well is |
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entitled to a 25 percent credit on the tax otherwise due on gas |
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produced [and saved] from that well during a month if the average |
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taxable price of gas certified by the comptroller under Subsection |
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(b) for the previous three-month period is more than $3 per mcf but |
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not more than $3.50 per mcf. |
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(d) An operator of a qualifying low-producing well is |
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entitled to a 50 percent credit on the tax otherwise due on gas |
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produced [and saved] from that well during a month if the average |
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taxable price of gas certified by the comptroller under Subsection |
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(b) for the previous three-month period is more than $2.50 per mcf |
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but not more than $3 per mcf. |
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(e) An operator of a qualifying low-producing well is |
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entitled to a 100 percent credit on the tax otherwise due on gas |
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produced [and saved] from that well during a month if the average |
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taxable price of gas certified by the comptroller under Subsection |
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(b) for the previous three-month period is not more than $2.50 per |
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mcf. |
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SECTION 5. Section 201.201, Tax Code, is amended to read as |
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follows: |
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Sec. 201.201. TAX DUE. The tax imposed by this chapter for |
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gas produced [and saved] is due at the office of the comptroller in |
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Austin on the 20th day of the second month following the month of |
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production. |
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SECTION 6. 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 7. This Act takes effect September 1, 2021. |