| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to phasing out the tax reduction for certain high-cost |
|
|
gas. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
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. |