Bill Text: TX SB37 | 2011 | 82nd Legislature 1st Special | Introduced
Bill Title: Relating to the elimination of the tax exemption or reduction for certain high-cost gas.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2011-06-14 - Co-author authorized [SB37 Detail]
Download: Texas-2011-SB37-Introduced.html
82S10233 MXM-D | ||
By: Ellis, Davis, Lucio | S.B. No. 37 |
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relating to the elimination of the tax exemption or 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 exemption or 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 October 1, 2011. The application must contain the | ||
certification of the commission that the well produces high-cost | ||
gas and, if the application is for a well spudded or completed after | ||
September 1, 1995, 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 exemption or | ||
tax deduction, an application to the comptroller for certification | ||
according to Subsection (a)(2)(A) must be filed with the | ||
comptroller before October 1, 2011, 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 exemption or | ||
tax deduction but is filed before October 1, 2011, the tax exemption | ||
or tax deduction 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. An | ||
application to the comptroller for certification according to | ||
Subsection (a)(2)(B) may not be filed before January 1, 1990, or | ||
after December 31, 1998. The comptroller shall approve the | ||
application of a person who demonstrates that the gas is eligible | ||
for the exemption or tax reduction. The comptroller may require a | ||
person applying for the exemption or 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 an oil or gas 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 an exemption or tax reduction under this | ||
section. | ||
SECTION 2. The comptroller of public accounts shall deposit | ||
to the credit of the foundation school fund any revenue received | ||
during the state fiscal biennium beginning September 1, 2011, that | ||
is generated by the change made by this Act to Section 201.057, Tax | ||
Code. | ||
SECTION 3. 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 4. 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 on the 91st day after the last day of the | ||
legislative session. |