PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3. TAX ADMINISTRATION
SUBCHAPTER B. NATURAL GAS
The Comptroller of Public Accounts proposes an amendment to §3.21, concerning exemption or tax reduction for high-cost natural gas. Subsections (i), (j) and (l) are being amended to clarify the method for requesting credits or refunds.
John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.
Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the public benefit anticipated as a result of enforcing the rule will be in clarifying the procedures for requesting credits for refunds for the tax on natural gas. This rule is adopted under Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.
Comments on the proposal may be submitted to Bryant K. Lomax, Policy Division, P.O. Box 13528, Austin, Texas 78711.
This amendment is proposed under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2.
The amendment implements Tax Code, §201.057.
§3.21.Exemption or Tax Reduction for High-Cost Natural Gas [(Tax Code, §201.057)].
(a) - (h) (No change.)
(i) Time limitations for credit or refunds.
(1) When an application for exemption or reduced tax
rate has been approved by the comptroller, a producer or purchaser
shall [may] file amended reports to recover the tax paid
by the producer or purchaser on the high-cost gas for periods after
the date of first production and prior to the comptroller's approval
of exemption. In order to obtain a credit or refund, as
provided in Tax Code, §201.057(i), the amended reports
must be filed by the first anniversary date [within
one year] after the date the comptroller approves the application
for exemption or reduced tax rate. The filing of an amended return
is the only acceptable method for requesting the credit or refund
from the comptroller.
(2) (No change.)
(j) Notification to non-producers. Producers obtaining
an approval for exemption from the comptroller shall furnish to any
first purchaser required to report a purchase of high-cost gas a copy
of the comptroller's approval. Any first purchaser paying tax on high-cost
gas for periods after the date of first production and prior to the
comptroller's approval of exemption shall file amended reports to
recover the tax paid. In order to obtain a credit or refund,
as provided in Tax Code, §201.057(i), the amended reports
must be filed by the first anniversary date [within
one year] after the date the comptroller approves the application
for exemption or reduced tax rate. The filing of an amended return
is the only acceptable method for requesting the credit or refund
from the comptroller.
(k) (No change.)
(l) Reduced tax rate. Tax must be paid at the full rate on all gas as defined in subsection (a)(2)(A) of this section for wells spudded or completed between September 1, 1996, and August 31, 1997. On or after September 1, 1997, the party paying the tax at the full rate may apply to the comptroller for a credit or refund of tax equal to the difference between the tax paid at the full rate and the tax that would be due if calculated at the reduced tax rate as defined in subsection (a)(7) of this section.
(m) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903534
Martin Cherry
General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: September 27, 2009
For further information, please call: (512) 936-6472