HBA-JRA S.B. 329 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 329
By: Haywood
Ways & Means
5/20/1999
Engrossed



BACKGROUND AND PURPOSE 

Under current law, oil and gas operators must pay their estimated July
taxes on August 15th during odd-numbered years, rather than at the end of
the standard grace period on September 1st, in order for the legislature to
appropriate funds for the upcoming biennium.  S.B. 329 eliminates the early
payment of estimated taxes in odd numbered years for oil and gas operators. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS
HBA-JRA S.B. 329 76(R)
SECTION 1. Repealer:  Section 153.118(e) (regarding gasoline tax reports),
Tax Code; Section 153.221(e) (regarding diesel fuel tax reports), Tax Code;
Section 201.2015 (regarding gas production estimated tax payments), Tax
Code; and Section 202.1515 (regarding oil production estimated tax
payments), Tax Code. 
 
SECTION 2. Amends Section 201.203(b), Tax Code, to delete text requiring a
penalty, if a producer fails to remit a reasonable estimate of tax due, of
10 percent of the delinquent estimate tax due. 

SECTION 3. Amends Section 201.2035(b), Tax Code, to delete text requiring a
penalty, if a purchaser fails to remit a reasonable estimate of tax due, of
10 percent of the delinquent estimate tax due. 

SECTION 4. Amends Section 202.201(b), Tax Code, to delete text requiring a
penalty, if a producer fails to remit a reasonable estimate of tax due, of
10 percent of the delinquent estimate tax due. 

SECTION 5. Amends Section 202.202(b), Tax Code, to delete text requiring a
penalty, if a first purchaser fails to remit a reasonable estimate of tax
due, of 10 percent of the delinquent estimate tax due. 

SECTION 6. Effective date: September 1, 2001.
  Makes application of this Act prospective.

SECTION 7. Emergency clause.