Bill Text: TX HB42 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to allocating a portion of oil and gas production tax revenue to the counties from which the oil and gas originated and to the use of that revenue.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2019-04-17 - Left pending in committee [HB42 Detail]
Download: Texas-2019-HB42-Introduced.html
86R216 ADM-D | ||
By: White | H.B. No. 42 |
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relating to allocating a portion of oil and gas production tax | ||
revenue to the counties from which the oil and gas originated and to | ||
the use of that revenue. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 201.404, Tax Code, is amended to read as | ||
follows: | ||
Sec. 201.404. ALLOCATION OF REVENUE. After deducting the | ||
amount required to be deposited by Section 201.403 [ |
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the comptroller shall deposit [ |
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from the tax imposed by this chapter as follows: | ||
(1) 25 percent to the credit of the foundation school | ||
fund; | ||
(2) two percent to the credit of the trust fund created | ||
under Section 205.001, to be disbursed to counties for the purposes | ||
and in the manner provided by that section; and | ||
(3) the remainder [ |
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revenue fund. | ||
SECTION 2. Section 202.353, Tax Code, is amended to read as | ||
follows: | ||
Sec. 202.353. ALLOCATION OF REVENUE. After deducting the | ||
amount required to be deposited by Section 202.352 [ |
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the comptroller shall deposit [ |
||
from the tax imposed by this chapter as follows: | ||
(1) 25 percent to the credit of the foundation school | ||
fund; | ||
(2) two percent to the credit of the trust fund created | ||
under Section 205.001, to be disbursed to counties for the purposes | ||
and in the manner provided by that section; and | ||
(3) the remainder [ |
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revenue fund. | ||
SECTION 3. Subtitle I, Title 2, Tax Code, is amended by | ||
adding Chapter 205 to read as follows: | ||
CHAPTER 205. SEVERANCE TAX TRUST FUND | ||
Sec. 205.001. TRUST FUND FOR REVENUE FROM SEVERANCE TAXES | ||
FOR COUNTIES. (a) The comptroller shall deposit the following in a | ||
trust fund outside the state treasury to be held with the | ||
comptroller in trust: | ||
(1) the revenue collected from the gas production tax | ||
as specified by Section 201.404(2); and | ||
(2) the revenue collected from the oil production tax | ||
as specified by Section 202.353(2). | ||
(b) The comptroller shall: | ||
(1) administer the fund as trustee on behalf of each | ||
county in this state; and | ||
(2) send to the county treasurer payable to the county | ||
the county's share of the revenue in the trust fund as provided by | ||
this section. | ||
(c) A county's share of the revenue in the trust fund is | ||
equal to the proportion that the gas production and oil production | ||
in that county bears to the total gas production and oil production | ||
in this state. | ||
(d) The comptroller shall remit to a county the county's | ||
share of the revenue in the trust fund not later than the 90th day | ||
after the last day of the calendar month during which the revenue | ||
was deposited in the trust fund. | ||
(e) A county may use money received under this section only | ||
to supplement construction and maintenance of county roads and | ||
bridges that are impacted by oil and gas exploration and production | ||
activities. | ||
SECTION 4. The changes in law made by this Act apply only to | ||
tax revenue collected under Chapters 201 and 202, Tax Code, from oil | ||
and gas produced on or after the effective date of this Act. Tax | ||
revenue collected under Chapters 201 and 202, Tax Code, from oil and | ||
gas produced before that date is governed by the law in effect on | ||
the date the oil and gas was produced, and that law is continued in | ||
effect for that purpose. | ||
SECTION 5. This Act takes effect September 1, 2021, but only | ||
if the constitutional amendment proposed by the 86th Legislature, | ||
Regular Session, 2019, authorizing the legislature to allocate a | ||
portion of oil and gas production tax revenue to the counties from | ||
which the oil and gas originated is approved by the voters. If that | ||
amendment is not approved by the voters, this Act has no effect. |