Bill Text: TX HB2277 | 2017-2018 | 85th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the temporary exemption or tax reduction for certain high-cost gas.
Spectrum: Bipartisan Bill
Status: (Passed) 2017-06-01 - Effective on 9/1/17 [HB2277 Detail]
Download: Texas-2017-HB2277-Comm_Sub.html
Bill Title: Relating to the temporary exemption or tax reduction for certain high-cost gas.
Spectrum: Bipartisan Bill
Status: (Passed) 2017-06-01 - Effective on 9/1/17 [HB2277 Detail]
Download: Texas-2017-HB2277-Comm_Sub.html
85R19229 ADM-F | |||
By: Darby | H.B. No. 2277 | ||
Substitute the following for H.B. No. 2277: | |||
By: Bohac | C.S.H.B. No. 2277 |
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relating to the temporary exemption or tax reduction for certain | ||
high-cost gas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 201.057(a)(2), Tax Code, is amended to | ||
read as follows: | ||
(2) "High-cost gas" means[ |
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Section 107, Natural Gas Policy Act of 1978 (15 U.S.C. Section | ||
3317), as that section existed [ |
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regard to whether that section is in effect or whether a | ||
determination has been made that the gas is high-cost natural gas | ||
for purposes of that Act[ |
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[ |
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SECTION 2. Section 201.057, Tax Code, is amended by | ||
amending Subsections (c), (e), (f), (g), and (i) and adding | ||
Subsection (g-1) to read as follows: | ||
(c) High-cost gas [ |
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produced from a well that is spudded or completed after August 31, | ||
1996, is entitled to a reduction of the tax imposed by this chapter | ||
for the first 120 consecutive calendar months beginning on the | ||
first day of production, or until the cumulative value of the tax | ||
reduction equals 50 percent of the drilling and completion costs | ||
incurred for the well, whichever occurs first. The amount of tax | ||
reduction shall be computed by subtracting from the tax rate | ||
imposed by Section 201.052 the product of that tax rate times the | ||
ratio of drilling and completion costs incurred for the well to | ||
twice the median drilling and completion costs for high-cost wells | ||
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the previous state fiscal year, except that the effective rate of | ||
tax may not be reduced below zero. | ||
(e) The operator of a proposed or existing gas well, | ||
including a gas well that has not been completed, [ |
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certification that the well produces or will produce high-cost gas. | ||
The [ |
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the first day of production. The application may be made but is not | ||
required to be made concurrently with a request for a determination | ||
that gas produced from the well is high-cost natural gas for | ||
purposes of the Natural Gas Policy Act of 1978 (15 U.S.C. Section | ||
3301 et seq.) [ |
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provide the commission with any relevant information required to | ||
administer this section. For purposes of this section, a | ||
determination that gas is high-cost natural gas for purposes of the | ||
Natural Gas Policy Act of 1978 (15 U.S.C. Section 3301 et seq.) | ||
[ |
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is a certification that the gas is high-cost gas for purposes of | ||
this section, and in that event additional certification is not | ||
required to qualify for the [ |
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by this section. | ||
(f) To qualify for the [ |
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by this section, the person responsible for paying the tax must | ||
apply to the comptroller. The application must contain the | ||
certification of the commission that the well produces high-cost | ||
gas and[ |
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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 [ |
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tax reduction [ |
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certification according to Subsection (a)(2) [ |
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filed with the comptroller 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, the [ |
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[ |
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180th day after the first day of production and ending on the date | ||
on which the application is filed with the comptroller. [ |
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application of a person who demonstrates that the gas is eligible | ||
for the [ |
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person applying for the [ |
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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 [ |
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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 [ |
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section. | ||
(g) As soon as practicable after March 1 of each year, the | ||
comptroller shall determine [ |
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all high-cost wells [ |
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an application for a tax reduction [ |
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made during the previous state fiscal year. In making the | ||
determination, the comptroller shall use the drilling and | ||
completion cost data required to be reported to the comptroller | ||
under Subsection (f). The [ |
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cost [ |
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Subsection (c) and is fixed on the date of the comptroller's | ||
determination under this subsection. | ||
(g-1) The report of drilling and completion costs required | ||
under Subsection (f) may not be amended after March 1 of the year | ||
following the state fiscal year in which the application was made. | ||
(i) If, before the commission certifies that a well produces | ||
high-cost gas or before the comptroller approves an application for | ||
a [ |
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imposed by this chapter is paid on high-cost gas that otherwise | ||
qualifies for the [ |
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section, the person who remitted the tax is [ |
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between the amount of the tax paid on the gas and the amount of tax | ||
that would have been paid on the gas if it had received a [ |
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section [ |
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periods before the date the application is filed may not exceed the | ||
total tax paid on the gas that otherwise qualified for the | ||
[ |
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consecutive calendar months immediately preceding the month in | ||
which the application for certification under this section that the | ||
comptroller approved was filed with the commission. [ |
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person entitled to the refund [ |
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apply to the comptroller for the refund [ |
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first anniversary after the date the comptroller approves the | ||
application for a [ |
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section. [ |
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SECTION 3. Sections 201.057(a)(3), (a)(4), (a)(5), (b), | ||
(d), and (j), Tax Code, are repealed. | ||
SECTION 4. 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 5. This Act takes effect September 1, 2017. |