Bill Text: TX HB2292 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the appraisal for ad valorem tax purposes of a real property interest in oil or gas in place.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-04-19 - Left pending in committee [HB2292 Detail]
Download: Texas-2021-HB2292-Introduced.html
87R8711 SMH-F | ||
By: Landgraf | H.B. No. 2292 |
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relating to the appraisal for ad valorem tax purposes of a real | ||
property interest in oil or gas in place. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 23.175, Tax Code, is amended to read as | ||
follows: | ||
Sec. 23.175. OIL OR GAS INTEREST. (a) If a real property | ||
interest in oil or gas in place is appraised by a method that takes | ||
into account the future income from the sale of oil or gas to be | ||
produced from the interest, the method must use the average price of | ||
the oil or gas from the interest for the preceding two calendar | ||
years [ |
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which the oil or gas produced from the interest is projected to be | ||
sold in each calendar [ |
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average price for the preceding two calendar years [ |
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calculated by dividing the sum of the monthly average prices for | ||
which oil and gas from the interest was selling during each month of | ||
the preceding two calendar years [ |
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production of oil or gas from the interest during any month of the | ||
preceding two calendar years [ |
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similar oil and gas from comparable interests was selling during | ||
that month is to be used. [ |
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(b) The comptroller by rule shall develop and distribute to | ||
each appraisal office appraisal manuals that specify the [ |
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methods and procedures to discount future income from the sale of | ||
oil or gas from the interest to present value. | ||
(c) Each appraisal office shall use the [ |
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methods[ |
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developed under Subsection (b). | ||
SECTION 2. This Act applies to the appraisal for ad valorem | ||
tax purposes of a real property interest in oil or gas in place only | ||
for a tax year beginning on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2022. |