Bill Text: TX HB1377 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to the repeal of the exemption from the severance tax for flared or vented gas.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-05 - Referred to Ways & Means [HB1377 Detail]

Download: Texas-2021-HB1377-Introduced.html
  87R2417 BEF-D
 
  By: González of Dallas H.B. No. 1377
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the repeal of the exemption from the severance tax for
  flared or vented gas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 201.052(a), Tax Code, is amended to read
  as follows:
         (a)  The tax imposed by this chapter is at the rate of 7.5
  percent of the market value of gas produced [and saved] in this
  state by the producer.
         SECTION 2.  Section 201.053, Tax Code, is amended to read as
  follows:
         Sec. 201.053.  GAS NOT TAXED. The tax imposed by this
  chapter does not apply to gas:
               (1)  injected into the earth in this state, unless sold
  for that purpose;
               (2)  [produced from oil wells with oil and lawfully
  vented or flared;
               [(3)]  used for lifting oil, unless sold for that
  purpose; or
               (3) [(4)]  produced in this state from a well that
  qualifies under Section 202.056 or 202.060.
         SECTION 3.  Section 201.059(a)(3), Tax Code, is amended to
  read as follows:
               (3)  "Qualifying low-producing well" means a gas well
  whose production during a three-month period is no more than 90 mcf
  per day [, excluding gas flared pursuant to the rules of the
  commission].  For purposes of qualifying a gas well, production per
  well per day is determined by computing the average daily
  production from the well using the greater of the monthly
  production from the well as reported in the monthly well production
  reports made to the commission and the monthly production from the
  well as reported in the producer's reports made to the comptroller
  under Section 201.203, including any amendments to those reports.
         SECTION 4.  Sections 201.059(c), (d), and (e), Tax Code, are
  amended to read as follows:
         (c)  An operator of a qualifying low-producing well is
  entitled to a 25 percent credit on the tax otherwise due on gas
  produced [and saved] from that well during a month if the average
  taxable price of gas certified by the comptroller under Subsection
  (b) for the previous three-month period is more than $3 per mcf but
  not more than $3.50 per mcf.
         (d)  An operator of a qualifying low-producing well is
  entitled to a 50 percent credit on the tax otherwise due on gas
  produced [and saved] from that well during a month if the average
  taxable price of gas certified by the comptroller under Subsection
  (b) for the previous three-month period is more than $2.50 per mcf
  but not more than $3 per mcf.
         (e)  An operator of a qualifying low-producing well is
  entitled to a 100 percent credit on the tax otherwise due on gas
  produced [and saved] from that well during a month if the average
  taxable price of gas certified by the comptroller under Subsection
  (b) for the previous three-month period is not more than $2.50 per
  mcf.
         SECTION 5.  Section 201.201, Tax Code, is amended to read as
  follows:
         Sec. 201.201.  TAX DUE. The tax imposed by this chapter for
  gas produced [and saved] is due at the office of the comptroller in
  Austin on the 20th day of the second month following the month of
  production.
         SECTION 6.  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 7.  This Act takes effect September 1, 2021.
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