reglab/statecodes huggingface dataset:
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle H - Business Permit Taxes › Chapter 191 - Miscellaneous Occupation Taxes › Subchapter G. Nature and Allocation of Tax › Section 191.122. Allocation of Tax

Sec. 191.122.  ALLOCATION OF TAX.  One-fourth of the revenue collected under this chapter shall be deposited to the credit of the foundation school fund and three-fourths to the credit of the general revenue fund.
Acts 1981, 67th Leg., p. 1725, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1981, 67th Leg., p. 2778, ch. 752, Sec. 9(h), eff. Jan. 1, 1982;  Acts 1984, 68th Leg., 2nd C.S., ch. 28, art. II, part B, Sec. 6, eff. Sept. 1, 1984.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter A. General Provisions › Section 201.001. Definitions

Sec. 201.001.  DEFINITIONS.  In this chapter:
(1)  "Casinghead gas" means gas or vapor indigenous to an oil stratum and produced from the stratum with oil.
(2)  "Condensate" means liquid hydrocarbon that is or can be recovered from gas by a separator, but does not include liquid hydrocarbon recovered from gas by refrigeration or absorption and separated by a fractionating process.
(3)  "First purchaser" means a person who purchases gas from a producer.
(4)  "Gas" means natural gas, casinghead gas, or other gas taken from the earth or water, whether produced from a gas well or a well also producing oil, distillate or condensate or both, or other products.
(5)  "Producer" means a person who takes gas from the earth or water, a person who owns, controls, manages, or leases a gas well, or a person who owns an interest, including a royalty interest, in gas or its value, whether the gas is produced by the person owning the interest or by another on his behalf by lease, contract, or other arrangement.
(6)  "Production" or "gas produced" means the gross amount of gas taken from the earth or water as determined by meter readings that show 100 percent of the gas taken expressed in cubic feet.
(7)  "Royalty interest" means an interest in mineral rights in a producing leasehold in the state, but does not include the interest of the person having the management and operation of a well.
(8)  "Sour gas" means gas with more than 1-1/2 grains of hydrogen sulfide per 100 cubic feet or more than 30 grains of sulphur per 100 cubic feet.
(9)  "Subsequent purchaser" means a person who purchases gas from a person other than the producer of the gas.
(10)  "Sweet gas" means gas other than sour gas or casinghead gas.
Acts 1981, 67th Leg., p. 1728, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter A. General Provisions › Section 201.002. Measurement of Volume of Gas

Sec. 201.002.  MEASUREMENT OF VOLUME OF GAS.  The provisions of Section 91.052 of the Standard Gas Measurement Law, Subchapter C, Chapter 91, Natural Resources Code, apply to this code.
Acts 1982, 67th Leg., p. 1729, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter B. Tax Imposed › Section 201.051. Tax Imposed

Sec. 201.051.  TAX IMPOSED.  There is imposed a tax on each producer of gas.
Acts 1981, 67th Leg., p. 1729, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter B. Tax Imposed › Section 201.052. Rate of Tax

Sec. 201.052.  RATE OF TAX.  (a)  The tax imposed by this chapter is at the rate of 7.5 percent of the market value of gas produced and saved in this state by the producer.
(b)  Repealed by Acts 2001, 77th Leg., ch. 1263, Sec. 84(3), eff. October 1, 2001.
Acts 1981, 67th Leg., p. 1729, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 2001, 77th Leg., ch. 1263, Sec. 84(3), eff. Oct. 1, 2001.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter B. Tax Imposed › Section 201.053. Gas Not Taxed

Sec. 201.053.  GAS NOT TAXED.  The tax imposed by this chapter does not apply to gas:
(1)  injected into the earth in this state, unless sold for that purpose;
(2)  produced from oil wells with oil and lawfully vented or flared;
(3)  used for lifting oil, unless sold for that purpose;  or
(4)  produced in this state from a well that qualifies under Section 202.056 or 202.060.
Acts 1981, 67th Leg., p. 1729, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1993, 73rd Leg., ch. 1015, Sec. 2, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 267 (H.B. 2161), Sec. 7, eff. January 1, 2006.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter B. Tax Imposed › Section 201.054. Tax on Liquid Hydrocarbons

Sec. 201.054.  TAX ON LIQUID HYDROCARBONS.  (a)  There is imposed on each producer a tax on the market value of liquid hydrocarbons, other than condensate, recovered from gas produced in the state by a producer.
(b)  The rate of the tax imposed by this section is the same as the rate of the tax imposed by Section 201.052 of this code.
Acts 1981, 67th Leg., p. 1729, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter B. Tax Imposed › Section 201.055. Tax on Condensate

Sec. 201.055.  TAX ON CONDENSATE.  (a)  There is imposed on each producer a tax measured by the amount of condensate recovered from gas produced in this state by a producer.
(b)  The tax imposed by this section is at the same rate as the rate of the tax imposed on oil by Section 202.052 of this code.
Acts 1981, 67th Leg., p. 1729, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter B. Tax Imposed › Section 201.058. Tax Exemptions

Sec. 201.058.  TAX EXEMPTIONS.  (a)  The exemptions described by Sections 202.056, 202.057, and 202.060 apply to the taxes imposed by this chapter as authorized by and subject to the certifications and approvals required by those sections.
(b)  Operators increasing production by marketing gas from an oil well or lease that has been released into the air for 12 months or more pursuant to the rules of the commission shall be entitled to an exemption from the tax imposed by this chapter on the production resulting from the marketing of such gas for the life of the well or lease.
Added by Acts 1995, 74th Leg., ch. 989, Sec. 3, eff. Jan. 1, 1996.  Amended by Acts 1997, 75th Leg., ch. 1060, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 267 (H.B. 2161), Sec. 8, eff. January 1, 2006.
Acts 2009, 81st Leg., R.S., Ch. 10 (S.B. 997), Sec. 1, eff. September 1, 2009.
Subsec. (g) of this section provided for the expiration of the section on Sept. 1, 2007.  Subsec. (g) was repealed by Acts 2007, 80th Leg., R.S., Ch. 911 (H.B. 2982), Sec. 4, which was effective January 1, 2008, after the section had expired.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter B. Tax Imposed › Section 201.060. Exemption of Gas Incidentally Produced in Association With the Production of Geothermal Energy

Sec. 201.060.  EXEMPTION OF GAS INCIDENTALLY PRODUCED IN ASSOCIATION WITH THE PRODUCTION OF GEOTHERMAL ENERGY.  Gas incidentally produced in association with the production of geothermal energy is not subject to the tax imposed by this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1036 (H.B. 4433), Sec. 1, eff. September 1, 2009.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter C. Determining Value › Section 201.101. Market Value

Sec. 201.101.  MARKET VALUE.  (a)  The market value of gas is its value at the mouth of the well from which it is produced.  The value of gas at the mouth of the well is determined by ascertaining the producer's actual marketing costs and subtracting those costs from the producer's gross cash receipts from the sale of the gas.
(b)  Marketing costs are the costs incurred by the producer to get the gas from the mouth of the well to the market, including:
(1)  costs for compressing the gas sold;
(2)  costs for dehydrating the gas sold;
(3)  costs for sweetening the gas sold;  and
(4)  costs for delivering the gas to the purchaser.
(c)  Marketing costs do not include:
(1)  costs incurred in producing the gas;
(2)  costs incurred in normal lease separation of the oil or condensate;  or
(3)  insurance premiums on the marketing facility.
(d)  Marketing costs are determined by adding:
(1)  a reasonable charge for depreciation of the marketing facility being used, provided that, if the facility is rented, the actual rental fee is added;
(2)  a return on the producer-owned investment equal to six percent per year on the average depreciable balance;
(3)  costs of direct or allocated labor associated with the marketing facility;
(4)  costs of materials, supplies, maintenance, repairs, and fuel associated with the marketing facility;  and
(5)  ad valorem taxes paid on the marketing facility.
(e)  If the facility is used for a purpose other than marketing the gas being sold, the cost shall be allocated accordingly.
(f)  If the facility is handling gas for outside parties, the average cost for handling all of the gas shall be applied against the facility owner's gas.
(g)  The actual cost being charged a producer by an outside party for marketing functions may be used for tax purposes if no other benefit or value accrues to the producer.
(h)  A producer receiving a cost reimbursement from the gas purchaser shall include the reimbursement in the gross cash receipts and is entitled to deduct the actual marketing costs incurred.
Acts 1981, 67th Leg., p. 1730, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 111, eff. Sept. 1, 2003.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter C. Determining Value › Section 201.102. Cash Sales

Sec. 201.102.  CASH SALES.  If gas is sold for cash only, the tax shall be computed on the producer's gross cash receipts.  Payments from a purchaser of gas to a producer for the purpose of reimbursing the producer for taxes due under this chapter are not part of the gross cash receipts.
Acts 1981, 67th Leg., p. 1730, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 112, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 267 (H.B. 2161), Sec. 10, eff. September 1, 2005.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter C. Determining Value › Section 201.103. Value if Consideration Includes Extracts

Sec. 201.103.  VALUE IF CONSIDERATION INCLUDES EXTRACTS.  If the consideration for the sale of gas includes products extracted from the gas, a portion of the residue gas, or both, the tax shall be computed on the gross value of all things of value received by the producer, including a bonus or premium.
Acts 1981, 67th Leg., p. 1730, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter C. Determining Value › Section 201.104. Returned Cycle Gas

Sec. 201.104.  RETURNED CYCLE GAS.  (a)  If gas is processed for its liquid hydrocarbon content and the residue gas is returned to a gas-producing formation by cycling methods, as distinguished from repressuring or pressure maintenance methods, the taxable value of the gas is three-fifths the value of all liquid hydrocarbons extracted, separated, and saved from the gas.
(b)  The value of the liquid hydrocarbons for the purpose of this section is the highest posted price of crude oil in the field where the gas is produced.  If no oil is produced in that field, the value is the highest posted price for crude oil in the nearest oil field.
(c)  The value of the liquid hydrocarbons is determined when they are extracted and separated from gas and before they are absorbed, refined, or processed.  The quantity of the liquid hydrocarbons is the yield from the gas at the processing plant.
(d)  The valuation method prescribed by this section controls over the valuation methods described in Sections 201.102 and 201.103 of this code only in circumstances in which Subsection (a) of this section applies.
Acts 1981, 67th Leg., p. 1730, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter C. Determining Value › Section 201.105. Value of Liquid Hydrocarbons Other Than Condensate

Sec. 201.105.  VALUE OF LIQUID HYDROCARBONS OTHER THAN CONDENSATE.  The taxable value of liquid hydrocarbons other than condensate is the producer's total gross receipts for all liquid hydrocarbons, including condensate, recovered from gas produced by him less the taxable value of the condensate recovered from that gas.
Acts 1981, 67th Leg., p. 1730, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter C. Determining Value › Section 201.106. Value of Condensate

Sec. 201.106.  VALUE OF CONDENSATE.  The value of condensate for the purpose of computing the tax due on it is the prevailing price for condensate in the general area where it is recovered.
Acts 1981, 67th Leg., p. 1730, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter D. Records › Section 201.151. Producer's Records

Sec. 201.151.  PRODUCER'S RECORDS.  A producer shall keep accurate records of all gas the producer produces.  The records shall be kept in the state.
Acts 1981, 67th Leg., p. 1731, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter D. Records › Section 201.152. Purchaser's Records

Sec. 201.152.  PURCHASER'S RECORDS.  A purchaser shall keep accurate records of all gas the purchaser purchases.  The records shall be kept in the state.
Acts 1981, 67th Leg., p. 1731, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.201. Tax Due

Sec. 201.201.  TAX DUE.  The tax imposed by this chapter for gas produced and saved is due at the office of the comptroller in Austin on the 20th day of the second month following the month of production.
Acts 1981, 67th Leg., p. 1731, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 1000, Sec. 63, eff. Oct. 1, 1995.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.202. Payment of Tax

Sec. 201.202.  PAYMENT OF TAX.  The tax imposed by this chapter must be paid by legal tender or cashier's check payable to the comptroller.
Acts 1981, 67th Leg., p. 1731, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 19.120, eff. Sept. 1, 1997.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.203. Producer's Report

Sec. 201.203.  PRODUCER'S REPORT.  (a)  On or before the 20th day of the second month following the month in which gas was produced, the producer shall file a report with the comptroller on forms prescribed by the comptroller.  The report must contain the following information concerning gas produced during the month being reported:
(1)  the gross amount of gas produced that is subject to the tax imposed by this chapter;
(2)  the leases from which the gas was produced;
(3)  the names and addresses of the first purchasers of the gas; and
(4)  other information the comptroller may reasonably require.
(b)  If the report the producer is required to file shows additional tax due, the producer must pay the additional tax when he files the report.
(c)  If the producer is required to report and pay the tax under Section 201.2041 of this code, the producer's report shall include for that gas any additional information required to be reported by a first purchaser under Section 201.2035 of this code for gas for which the first purchaser is required to pay the tax.
Acts 1981, 67th Leg., p. 1731, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1983, 68th Leg., p. 1378, ch. 284, Sec. 8, eff. Sept. 1, 1983;  Acts 1987, 70th Leg., 2nd C.S., ch. 6, art. 4, Sec. 1, eff. July 21, 1987;  Acts 1999, 76th Leg., ch. 1183, Sec. 2, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 10 (S.B. 997), Sec. 2, eff. September 1, 2009.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.2035. First Purchaser's Report

Sec. 201.2035.  FIRST PURCHASER'S REPORT.  (a)  On or before the 20th day of the second month following the month in which gas was purchased from a producer, the first purchaser must file a report with the comptroller on forms prescribed by the comptroller.  The report must contain the following information concerning gas purchased from a producer during the month being reported:
(1)  the gross amount of gas purchased from each producer;
(2)  the price paid for the gas;
(3)  the leases from which the gas was produced; and
(4)  other information the comptroller may reasonably require.
(b)  If the report the first purchaser is required to file shows any additional tax due, the first purchaser must pay the tax when he files the report.
Added by Acts 1983, 68th Leg., p. 1378, ch. 284, Sec. 9, eff. Sept. 1, 1983.  Amended by Acts 1999, 76th Leg., ch. 1183, Sec. 3, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 10 (S.B. 997), Sec. 3, eff. September 1, 2009.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.204. First Purchaser to Pay Tax

Sec. 201.204.  FIRST PURCHASER TO PAY TAX.  (a)  Except as provided by Section 201.2041, a first purchaser shall pay the tax imposed by this chapter on gas that the first purchaser purchases from a producer and takes delivery on the premises where the gas is produced.
(b)  A first purchaser shall withhold from payments to the producer the amount of the tax that the first purchaser is required to pay.  This subsection does not affect a lease or contract between the state or a political subdivision of the state and a producer.
(c)  Money withheld by a first purchaser under this section is held in trust for the use and benefit of the state and may not be commingled with other funds of the first purchaser.
Acts 1981, 67th Leg., p. 1731, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 6, art. 4, Sec. 2, eff. July 21, 1987.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.2041. Producer to Pay Tax on Certain Gas

Sec. 201.2041.  PRODUCER TO PAY TAX ON CERTAIN GAS.  If the first purchaser takes delivery of gas off the premises on which the gas is produced, the producer shall report and pay the tax imposed by this chapter on the volume of gas produced from the premises.  In that event, the first purchaser is not required to report the purchase of the gas on the report required by Section 201.2035 of this code or pay the tax on that gas.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 6, art. 4, Sec. 3, eff. July 21, 1987.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.205. Tax Borne Ratably

Sec. 201.205.  TAX BORNE RATABLY.  The tax shall be borne ratably by all interested parties, including royalty interests.  Producers or purchasers of gas, or both, are authorized and required to withhold from any payment due interested parties the proportionate tax due and remit it to the comptroller.
Acts 1981, 67th Leg., p. 1731, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.206. Transfer of Ownership

Sec. 201.206.  TRANSFER OF OWNERSHIP.  (a)  If a gas-producing lease is transferred or is to be transferred, the producer transferring the lease shall note the name and address of the producer acquiring the lease and the date of the transfer on the last report that covers the lease and that he is required by Section 201.203 of this code to file.
(b)  If a gas-producing lease is transferred, the producer acquiring the lease shall note the date of the transfer and the name and address of the person from whom the lease was acquired on the first report that covers the lease and that he is required by Section 201.203 of this code to file.
Acts 1981, 67th Leg., p. 1732, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter E. Reports and Payments › Section 201.207. Determination of Overpaid Amounts

Sec. 201.207.  DETERMINATION OF OVERPAID AMOUNTS.  (a)  This section applies to the tax paid under this chapter by a person who filed a report under Section 201.203 or 201.2035 and remitted tax in error to this state.
(b)  A person to whom this section applies may compute the amount of overpayment using a sampling of marketing cost transactions if the comptroller approves the sampling method.
(c)  The person may obtain reimbursement for amounts determined to have been overpaid by taking a credit on one or more reports filed under Section 201.203 or 201.2035 or by filing a claim for refund with the comptroller within the limitation period specified by Section 111.107 and Subchapter D, Chapter 111.
(d)  The person must record the method by which the computation of the overpayment is performed and must make available on request by the comptroller the records on which the computation is based.
(e)  The comptroller may adopt rules specifying additional procedures that must be followed in connection with claiming a credit under this section.
Added by Acts 2019, 86th Leg., R.S., Ch. 1113 (H.B. 2256), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter F. Liability for Tax › Section 201.251. Liability of Producer and Purchaser

Sec. 201.251.  LIABILITY OF PRODUCER AND PURCHASER.  (a)  The tax imposed by this chapter is the primary liability of the producer and, except as provided by Subsection (b) of this section, is a liability of the first purchaser and each subsequent purchaser.  Failure of the first purchaser to pay the tax does not relieve the producer or a subsequent purchaser from liability for the tax.  A purchaser of gas produced in the state shall satisfy himself that the tax on that gas has been or will be paid by the person liable for the tax.
(b)  The first purchaser is not liable for the tax imposed by this chapter on gas for which the producer is required to pay the tax as provided by Section 201.2041 of this code, unless the first purchaser purchases the gas for resale or resells the gas.
Acts 1981, 67th Leg., p. 1732, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 6, art. 4, Sec. 4, eff. July 21, 1987.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter F. Liability for Tax › Section 201.252. Producer's Remedy

Sec. 201.252.  PRODUCER'S REMEDY.  If a purchaser withholds the amount of the tax imposed by this chapter from payments to a producer for the sale of gas and fails to pay the tax as provided by this chapter, the producer may sue the purchaser to recover the amount of the tax withheld, penalties and interest that have accrued from failure to pay the tax, court costs, and reasonable attorney's fees.
Acts 1981, 67th Leg., p. 1732, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter G. Enforcement › Section 201.301. Investigations

Sec. 201.301.  INVESTIGATIONS.  The comptroller may enter the premises of a taxpayer liable for a tax imposed by this chapter or any other premises necessary to determine tax liability in order to examine books or records of a person subject to a tax imposed by this chapter or to secure any information related to the enforcement of this chapter.
Acts 1981, 67th Leg., p. 1732, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter G. Enforcement › Section 201.302. Audits

Sec. 201.302.  AUDITS.  (a)  The comptroller shall employ auditors and other technical assistants to verify reports and investigate the affairs of producers and purchasers to determine whether the tax is properly reported and paid.
(b)  A producer who has failed to pay the proper amount of tax, a penalty, or interest due is liable for the reasonable expenses incurred by representatives of the comptroller in the investigation or the reasonable value of their services.  The amount for which the producer is liable under this subsection is an additional penalty.
Acts 1981, 67th Leg., p. 1732, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter G. Enforcement › Section 201.3021. Managed Audits

Sec. 201.3021.  MANAGED AUDITS.  (a)  In this section, "managed audit" means a review and analysis of invoices, checks, accounting records, or other documents or information conducted by a taxpayer to determine a taxpayer's liability for tax under this chapter.
(b)  The comptroller may, in a written agreement, authorize a taxpayer to conduct a managed audit under this section.  The agreement must:
(1)  be signed by an authorized representative of the comptroller and the taxpayer; and
(2)  specify the period to be audited and the procedure to be followed.
(c)  The decision to authorize or not authorize a managed audit rests solely with the comptroller.
(d)  In determining whether to authorize a managed audit under this section, the comptroller may consider:
(1)  the taxpayer's history of tax compliance;
(2)  whether the taxpayer has sufficient time and resources to conduct the audit;
(3)  the sufficiency and availability of the taxpayer's tax records;
(4)  the taxpayer's ability to pay any liability arising as a result of the audit; and
(5)  any other factor the comptroller determines is relevant.
(e)  A managed audit may be limited to one or more factors affecting a taxpayer's liability for tax under this chapter, including:
(1)  gross value of gas produced;
(2)  exempt interest;
(3)  marketing costs of gas produced;
(4)  gas used to power operations at a well or lease; or
(5)  tax reimbursement paid by a purchaser to a producer.
(f)  The comptroller may examine records and perform reviews that the comptroller determines are necessary before the audit is finalized to verify the results of the audit.
(g)  Unless the audit or information reviewed by the comptroller under Subsection (f) discloses fraud or wilful evasion of the tax, the comptroller may not assess a penalty and may waive all or part of the interest that would otherwise accrue on any amount identified to be due in a managed audit. This subsection does not apply to any amount collected by the taxpayer that was a tax or represented to be a tax but that was not remitted to this state.
(h)  Except as provided by Section 111.104(f), the taxpayer is entitled to a refund of any tax overpayment disclosed by a managed audit under this section.
(i)  The comptroller may adopt rules and establish procedures to administer this section, including procedures that must be followed when conducting a managed audit under this section.
Added by Acts 2019, 86th Leg., R.S., Ch. 1113 (H.B. 2256), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter G. Enforcement › Section 201.303. Tax Lien

Sec. 201.303.  TAX LIEN.  (a)  If a tax imposed by this chapter is delinquent or if interest or a penalty on a delinquent tax has not been paid, the state has a prior lien for the tax, penalty, and interest on all property and equipment used by the producer to produce gas.
(b)  The lien may be enforced by a suit filed by the attorney general.  Venue of the suit is in Travis County.
Acts 1981, 67th Leg., p. 1733, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter G. Enforcement › Section 201.304. Suit for Taxes; Sworn Denial

Sec. 201.304.  SUIT FOR TAXES;  SWORN DENIAL.  Rule 185, Texas Rules of Civil Procedure, applies to a suit by the attorney general for taxes imposed by this chapter if:
(1)  the attorney general files as an exhibit a report or audit of the taxpayer;  and
(2)  the exhibit is supported by the comptroller's affidavit that the taxes shown to be due are past due and unpaid and that all payments and credits have been allowed.
Acts 1981, 67th Leg., p. 1733, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter H. Penalties › Section 201.351. Delinquent Tax; Penalty

Sec. 201.351.  DELINQUENT TAX;  PENALTY.  (a)  A person who fails to pay the tax imposed by this chapter when due forfeits five percent of the amount due as a penalty, and if the person fails to pay the tax within 30 days after the day on which the tax is due, the person forfeits an additional five percent.
(b)  The minimum penalty provided by this section is $1.
(c)  Notwithstanding Subsections (a) and (b), a person is not subject to a penalty under Subsection (a) if:
(1)  the delinquent tax results from the person's filing of an amended report with the comptroller for a timely filed original report under Section 201.203 or 201.2035;
(2)  the person timely paid the full amount of tax due as indicated in the original report;
(3)  the amount of additional tax due as a result of all amended reports for the original report does not exceed 25 percent of the tax due as indicated in the original report;
(4)  the person resolves all errors identified by the comptroller on the amended or original report that could affect the amount of tax due on that report not later than the 60th day after the date on which the amended or original report, as applicable, is filed; and
(5)  the person files the amended report not later than the 730th day after the date on which the original report was due and remits the full amount of the additional tax due with the amended report.
Acts 1981, 67th Leg., p. 1733, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1983, 68th Leg., p. 453, ch. 93, Sec. 7, eff. Sept. 1, 1983.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 702 (H.B. 3232), Sec. 1, eff. January 1, 2018.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter H. Penalties › Section 201.352. Unlawful Removal of Gas

Sec. 201.352.  UNLAWFUL REMOVAL OF GAS.  On notice from the comptroller, no person may produce or remove natural or casinghead gas from a lease in this state if the owner or operator of the lease has failed to file a report or pay a tax as required by this chapter.
Acts 1981, 67th Leg., p. 1733, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 1, Sec. 11, eff. July 21, 1987.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter H. Penalties › Section 201.353. Incomplete Records or Reports; Concealing Property Under Lien; Penalty

Sec. 201.353.  INCOMPLETE RECORDS OR REPORTS;  CONCEALING PROPERTY UNDER LIEN;  PENALTY.  (a)  A person commits an offense if the person:
(1)  with intent to defraud the state, knowingly fails to keep a complete record that the person is required by this chapter to keep;
(2)  knowingly fails to file a complete report on or before the day the person is required by this chapter to file the report;  or
(3)  with intent to defraud the state, conceals property or equipment that is under a lien authorized by Section 201.303 of this code.
(b)  An offense under this section is a misdemeanor punishable by:
(1)  a fine of not less than $100 nor more than $1,000;
(2)  confinement in county jail for not more than 12 months;  or
(3)  both a fine and confinement.
(c)  In addition to the criminal penalty, a person is liable for a civil penalty of $1,000 if the person:
(1)  performs any act constituting an offense under Subsection (a) of this section;
(2)  with intent to defraud the state, makes a false entry in any record the person is required by this chapter to keep;
(3)  destroys, damages, or conceals a record the person is required by this chapter to keep;
(4)  falsifies a report the person is required by this chapter to file;  or
(5)  violates any rule promulgated under this section.
Acts 1981, 67th Leg., p. 1733, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter H. Penalties › Section 201.354. Collection of Civil Penalty

Sec. 201.354.  COLLECTION OF CIVIL PENALTY.  (a)  The attorney general shall bring a suit for the collection of a penalty imposed by Section 201.353(c) of this code.
(b)  Venue of a suit under this section is in the county where the violation occurs.
(c)  A suit under this section may be joined with any other civil suit provided for by this chapter.
Acts 1981, 67th Leg., p. 1734, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter H. Penalties › Section 201.355. General Penalty

Sec. 201.355.  GENERAL PENALTY.  (a)  A person commits an offense if the person violates or fails to comply with any provision of this chapter.
(b)  An offense under this section is a misdemeanor punishable by a fine of not less than $100 nor more than $1,000.  A separate offense is committed each day that a violation of a provision of this chapter continues.
Acts 1981, 67th Leg., p. 1734, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter I. Classification of Tax and Allocation of Revenue › Section 201.401. Occupation Tax

Sec. 201.401.  OCCUPATION TAX.  The tax imposed by this chapter is an occupation tax.
Acts 1981, 67th Leg., p. 1734, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter I. Classification of Tax and Allocation of Revenue › Section 201.402. Penalty Collected for Audits or Investigations

Sec. 201.402.  PENALTY COLLECTED FOR AUDITS OR INVESTIGATIONS.  A penalty collected for the expense or value of audits or investigations authorized by Section 201.302 of this code shall be deposited in the general revenue fund.
Acts 1981, 67th Leg., p. 1734, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter I. Classification of Tax and Allocation of Revenue › Section 201.403. Tax Set Aside

Sec. 201.403.  TAX SET ASIDE.  One-half of one percent of the tax collected under this chapter shall be set aside in the state treasury for the use of the comptroller to administer and enforce the provisions of this chapter, subject to appropriation by the legislature.  Money set aside by this section that is not spent at the end of a fiscal year reverts proportionally to the other funds to which the taxes imposed by this chapter are paid.
Acts 1981, 67th Leg., p. 1734, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 201 - Gas Production Tax › Subchapter I. Classification of Tax and Allocation of Revenue › Section 201.404. Allocation of Revenue

Sec. 201.404.  ALLOCATION OF REVENUE.  After deducting the amount required to be deposited by Section 201.403 of this code, the comptroller shall deposit one-fourth of the revenue collected from the tax imposed by this chapter to the credit of the foundation school fund and three-fourths to the general revenue fund.
Acts 1981, 67th Leg., p. 1734, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1981, 67th Leg., p. 2778, ch. 752, Sec. 9(h), eff. Jan. 1, 1982;  Acts 1984, 68th Leg., 2nd C.S., ch. 28, art. II, part B, Sec. 7, eff. Sept. 1, 1984.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter A. General Provisions › Section 202.001. Definitions

Sec. 202.001.  DEFINITIONS.  In this chapter:
(1)  "Carrier" means a person who owns, operates, or manages a means of transporting oil.
(2)  "First purchaser" means a person who purchases crude oil from a producer.
(3)  "Oil" means crude oil or other oil taken from the earth, regardless of the gravity of the oil.
(4)  "Producer" means a person who takes oil from the earth or water in any manner, a person who owns, controls, manages, or leases an oil well, or a person who owns an interest, including a royalty interest, in oil or its value, whether the oil is produced by the person owning the interest or by another on his behalf by lease, contract, or any other arrangement.
(5)  "Royalty interest" means an interest in mineral rights in a producing leasehold in the state, but does not include the interest of a person having the management and operation of a well.
(6)  "Subsequent purchaser" means a person who purchases oil from a person other than the producer of the oil, or a person operating a reclamation plant, topping plant, treating plant, refinery, or processing plant.
Acts 1981, 67th Leg., p. 1736, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter A. General Provisions › Section 202.002. Production and Measurement of Oil

Sec. 202.002.  PRODUCTION AND MEASUREMENT OF OIL.  (a)  "Production" means the total gross amount of oil produced, including royalty and other interests.
(b)  The amount of production shall be measured or determined by:
(1)  tank tables compiled to show 100 percent of the capacity of the tanks without deduction for overage or losses in handling;  or
(2)  meter or other measuring devices that accurately determine the amount of production.
(c)  If the amount of production has been measured or determined by a tank table compiled to show less than 100 percent of the full capacity of a tank, the amount must be raised to a basis of 100 percent.
(d)  When measuring or determining the amount of production, a reasonable deduction may be made for basic sediment and water and a reasonable allowance may be made for correction of the temperature to 60 degrees Fahrenheit.
(e)  This section does not authorize the use of metering devices for the measurement of oil on a well without the express permission of the operator of the well.
Acts 1981, 67th Leg., p. 1736, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter A. General Provisions › Section 202.003. Agreement to Pay Tax Not Impaired

Sec. 202.003.  AGREEMENT TO PAY TAX NOT IMPAIRED.  This code does not impair a contract in which any person has agreed to pay any part of the tax imposed by this chapter.  This code does not relieve any person of any contractual liability.
Acts 1981, 67th Leg., p. 1737, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter A. General Provisions › Section 202.004. Inspection of Records and Reports

Sec. 202.004.  INSPECTION OF RECORDS AND REPORTS.  A person required by this chapter to make and keep a record shall keep the record open for inspection by the comptroller or the attorney general at all times.  Reports filed under this chapter are open to inspection by the attorney general.
Acts 1981, 67th Leg., p. 1737, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter A. General Provisions › Section 202.005. Employment of Auditors

Sec. 202.005.  EMPLOYMENT OF AUDITORS.  The comptroller may employ auditors and supervisors to verify reports and investigate the affairs of producers and purchasers to determine whether the tax imposed by this chapter is being properly reported and paid.
Acts 1981, 67th Leg., p. 1737, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter A. General Provisions › Section 202.006. Taxpayer Identification Number

Sec. 202.006.  TAXPAYER IDENTIFICATION NUMBER.  (a)  Except as otherwise provided by Subsection (b), each producer must obtain a taxpayer identification number from the comptroller.
(b)  A producer whose only ownership interest in the oil is a royalty interest must obtain a tax identification number from the comptroller only if the producer has elected to take the producer's share of production in kind or if the comptroller determines that the producer's activity or interest requires that a number be assigned to protect the state's interest in the tax attributable to the producer.
Added by Acts 1993, 73rd Leg., ch. 587, Sec. 33, eff. Jan. 1, 1994.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter B. Tax Imposed › Section 202.051. Tax Imposed

Sec. 202.051.  TAX IMPOSED.  There is imposed a tax on the production of oil.
Acts 1981, 67th Leg., p. 1737, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter B. Tax Imposed › Section 202.052. Rate of Tax

Sec. 202.052.  RATE OF TAX.  (a)  The tax imposed by this chapter is at the rate of 4.6 percent of the market value of oil produced in this state or 4.6 cents for each barrel of 42 standard gallons of oil produced in this state, whichever rate results in the greater amount of tax.
(b)  For oil produced in this state from a new or expanded enhanced recovery project that qualifies under Section 202.054 of this code, the rate of the tax imposed by this chapter is 2.3 percent of the market value of the oil.
(c)  The exemptions described by Sections 202.056, 202.059, and 202.060 apply to oil produced in this state from a well that qualifies under Section 202.056, 202.059, or 202.060, subject to the certifications and approvals required by those sections.
Acts 1981, 67th Leg., p. 1737, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1989, 71st Leg., ch. 795, Sec. 1, eff. Sept. 1, 1989;  Acts 1991, 72nd Leg., ch. 604, Sec. 1, eff. Sept. 1, 1991;  Acts 1993, 73rd Leg., ch. 1015, Sec. 1, eff. Sept. 1, 1993;  Acts 1995, 74th Leg., ch. 989, Sec. 4, eff. Jan. 1, 1996.
Amended by:
Acts 2005, 79th Leg., Ch. 267 (H.B. 2161), Sec. 11, eff. January 1, 2006.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter B. Tax Imposed › Section 202.053. Market Value

Sec. 202.053.  MARKET VALUE.  The market value of oil is the actual market value plus any bonus, premium, or other thing of value paid for the oil or that the oil will reasonably bring if lawfully produced.
Acts 1981, 67th Leg., p. 1737, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle I - Severance Taxes › Chapter 202 - Oil Production Tax › Subchapter B. Tax Imposed › Section 202.060. Exemption for Oil and Gas From Reactivated Orphaned Wells

Sec. 202.060.  EXEMPTION FOR OIL AND GAS FROM REACTIVATED ORPHANED WELLS.  (a)  In this section:
(1)  "Commission" means the Railroad Commission of Texas.
(2)  "Orphaned well" has the meaning assigned by Section 89.047, Natural Resources Code.
(b)  The commission shall issue a certificate to a person who is designated by the commission under Section 89.047, Natural Resources Code, as the operator of an orphaned well.  The certificate must identify the operator to whom and the well for which the certificate is issued.
(c)  Hydrocarbons produced from the well identified in the certificate qualify for a severance tax exemption.
(d)  The commission shall adopt all rules necessary to administer this section.
(e)  To qualify for the tax exemption provided by this section, the person responsible for paying the tax must apply to the comptroller.  The application must include a copy of the certificate issued by the commission.  The comptroller shall approve the application if the person demonstrates that the hydrocarbon production is eligible for a tax exemption.  The comptroller may require a person applying for the tax exemption to provide any relevant information necessary to administer this section.  The comptroller may establish procedures to comply with this section.
(f)  The exemption takes effect on the first day of the month following the month in which the comptroller approves the application.
(g)  If the person to whom the certificate is issued ceases to be the operator of the well as shown by the records of the commission, the commission shall notify the comptroller.  The exemption expires on the date the notice is received.
(h)  A person who makes or subscribes an application, report, or other document and submits it to the commission to form the basis for an application for a tax exemption under this section, knowing that the application, report, or other document is untrue in a material fact, is subject to the penalties imposed by Chapters 85 and 91, Natural Resources Code.
(i)  A person is liable to the state for a civil penalty if the person applies or attempts to apply the tax exemption authorized by this section for a well after the person to whom the certificate for the well was issued ceases to be the operator of the well as shown by the records of the commission.  The amount of the penalty may not exceed the sum of:
(1)  $10,000; and
(2)  the difference between the amount of taxes paid or attempted to be paid and the amount of taxes due.
(j)  The attorney general may recover a penalty under Subsection (i) in a suit brought on behalf of the state.  Venue for the suit is in Travis County.
Added by Acts 2005, 79th Leg., Ch. 267 (H.B. 2161), Sec. 12, eff. January 1, 2006.