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A BILL TO BE ENTITLED
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AN ACT
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relating to phasing out the 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 tax reduction provided by this |
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section, the person responsible for paying the tax must apply to the |
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comptroller. Notwithstanding any other provision of this section, |
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the application must be filed with the comptroller before September |
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1, 2023. The application must contain the certification of the |
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commission that the well produces high-cost gas and must contain a |
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report of drilling and completion costs incurred for each well on a |
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form and in the detail as determined by the comptroller. Drilling |
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and completion costs for a recompletion shall only include current |
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and contemporaneous costs associated with the |
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recompletion. Notwithstanding any other provision of this |
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section, to obtain the maximum tax reduction, an application to the |
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comptroller for certification according to Subsection (a)(2) must |
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be filed with the comptroller before September 1, 2023, and at the |
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later of the 180th day after the date of first production or the |
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45th day after the date of approval by the commission. If the |
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application is not filed by the applicable deadline to obtain the |
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maximum tax reduction but is filed before September 1, 2023, the tax |
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reduction is reduced by 10 percent for the period beginning on the |
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180th day after the first day of production and ending on the date |
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on which the application is filed with the comptroller. The |
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comptroller shall approve the application of a person who |
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demonstrates that the gas is eligible for the tax reduction. The |
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comptroller may require a person applying for the 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 a well previously certified as |
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producing high-cost gas does not produce high-cost gas or if it |
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takes any action or discovers any information that affects the |
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eligibility of gas for a tax reduction under this 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, 2023. |