SB1296 - Relating to phasing out the tax reduction for certain high-cost gas.

  89R2248 RDS-F     By: Johnson S.B. No. 1296       A BILL TO BE ENTITLED   AN ACT   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, 2025. 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, 2025, 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, 2025 , 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, 2025.