Bill Text: TX SB1417 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to phasing out the tax reduction for certain high-cost gas.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-04-15 - Left pending in committee [SB1417 Detail]
Download: Texas-2019-SB1417-Introduced.html
| 86R8200 SMT-F | ||
| By: Johnson | S.B. No. 1417 | |
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| 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, 2019. 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, 2019, 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, 2019, 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, 2019. | ||
