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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption or tax reduction for certain high-cost |
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gas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 201.057(f), Tax Code, is amended to read |
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as follows: |
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(f) To qualify for the exemption or tax reduction provided |
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by this section, the person responsible for paying the tax must |
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apply to the comptroller. Notwithstanding any other provision of |
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this section, the application must be filed with the comptroller |
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before September 1, 2011. The application must contain the |
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certification of the commission that the well produces high-cost |
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gas and, if the application is for a well spudded or completed after |
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September 1, 1995, must contain a report of drilling and completion |
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costs incurred for each well on a form and in the detail as |
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determined by the comptroller. Drilling and completion costs for a |
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recompletion shall only include current and contemporaneous costs |
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associated with the recompletion. Notwithstanding any other |
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provision of this section, to obtain the maximum tax exemption or |
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tax deduction, an application to the comptroller for certification |
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according to Subsection (a)(2)(A) must be filed with the |
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comptroller before September 1, 2011, and at the later of the 180th |
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day after the date of first production or the 45th day after the |
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date of approval by the commission. If the application is not filed |
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by the applicable deadline to obtain the maximum tax exemption or |
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tax deduction but is filed before September 1, 2011, the tax |
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exemption or tax deduction is reduced by 10 percent for the period |
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beginning on the 180th day after the first day of production and |
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ending on the date on which the application is filed with the |
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comptroller. An application to the comptroller for certification |
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according to Subsection (a)(2)(B) may not be filed before January |
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1, 1990, or after December 31, 1998. The comptroller shall approve |
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the application of a person who demonstrates that the gas is |
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eligible for the exemption or tax reduction. The comptroller may |
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require a person applying for the exemption or tax reduction to |
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provide any relevant information in the person's monthly report |
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that the comptroller considers necessary to administer this |
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section. The commission shall notify the comptroller in writing |
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immediately if it determines that an oil or gas well previously |
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certified as producing high-cost gas does not produce high-cost gas |
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or if it takes any action or discovers any information that affects |
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the eligibility of gas for an exemption or tax reduction under this |
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section. |
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SECTION 2. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |