| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the appraisal for ad valorem tax purposes of a real |
|
|
property interest in oil or gas in place. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 23.175(a), Tax Code, is amended to read |
|
|
as follows: |
|
|
(a) If a real property interest in oil or gas in place is |
|
|
appraised by a method that takes into account the future income from |
|
|
the sale of oil or gas to be produced from the interest, the method |
|
|
must use the average price of the oil or gas from the interest for |
|
|
the preceding two calendar years [year multiplied by a market
|
|
|
condition factor] as the price at which the oil or gas produced from |
|
|
the interest is projected to be sold in each calendar [the current] |
|
|
year of the appraisal. The average price for the preceding two |
|
|
calendar years [year] is calculated by dividing the sum of the |
|
|
monthly average prices for which oil and gas from the interest was |
|
|
selling during each month of the preceding two calendar years |
|
|
[year] by 24 [12]. If there was no production of oil or gas from |
|
|
the interest during any month of the preceding two calendar years |
|
|
[year], the average price for which similar oil and gas from |
|
|
comparable interests was selling during that month is to be |
|
|
used. [The comptroller shall calculate the market condition
|
|
|
factor by dividing the comptroller's current calendar year
|
|
|
statewide average price for oil or gas, as applicable, forecasted
|
|
|
for revenue estimating purposes by the preceding calendar year
|
|
|
actual statewide average price for oil or gas, as applicable.] For |
|
|
purposes of this section [calculating the market condition factor], |
|
|
"price" means the market value of oil or gas as determined under |
|
|
Subchapter C, Chapter 201, or Section 202.053, as applicable. The |
|
|
comptroller shall calculate the preceding two calendar years [year] |
|
|
actual statewide average prices for oil and gas [and the market
|
|
|
condition factors for oil and gas] and publish that information to |
|
|
be used for ad valorem tax appraisal purposes [concurrently with
|
|
|
the current calendar year statewide average prices for oil and gas
|
|
|
forecasted for revenue estimating purposes.
The price for the
|
|
|
interest used in the second or a subsequent calendar year of the
|
|
|
appraisal shall reflect the same percentage rate increase or
|
|
|
decrease in the price for oil or gas, as applicable, as projected
|
|
|
for that calendar year by the comptroller for revenue estimating
|
|
|
purposes]. |
|
|
SECTION 2. This Act applies only to ad valorem taxes imposed |
|
|
for a tax year beginning on or after the effective date of this Act. |
|
|
SECTION 3. This Act takes effect January 1, 2012. |