Texas Tax Code Title 2, Chapter 202 - Oil Production Tax

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...

SUBCHAPTER B TAX IMPOSED

• Texas Section 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...
• Texas Section 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.
• Texas Section 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...
• Texas Section 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...
• Texas Section 202.054 - Qualification Of Oil From New Or Expanded Enhanced Recovery Project For Special Tax Rate
  (a) In this section: (1) "Active operation" means the start and continuation of a fluid injection program for a secondary or tertiary recovery project to...
• Texas Section 202.0545 - Tax Exemption For Enhanced Recovery Projects Using Anthropogenic Carbon Dioxide
  (a) Subject to the limitations provided by this section, until the 30th anniversary of the date that the comptroller first approves an application for a...
• Texas Section 202.056 - Exemption For Oil And Gas From Wells Previously Inactive
  (a) In this section: (1) "Commission" means the Railroad Commission of Texas. (2) "Hydrocarbons" means any oil or gas produced from a well, including hydrocarbon...
• Texas Section 202.057 - Tax Credit For Incremental Production Techniques
  (a) In this section: (1) "Baseline production" means a lease's average monthly production during the four highest months of production in the time period from...
• Texas Section 202.058 - Credits For Qualifying Low-producing Oil Leases
  (a) In this section: (1) "Commission" means the Railroad Commission of Texas. (2) "Qualifying low-producing oil lease" means a well classified as an oil well...
• Texas Section 202.059 - Exemption For Hydrocarbons From Terra Wells
  (a) Hydrocarbons produced from a well subject to an agreement under Chapter 93, Natural Resources Code, and under a license issued under that chapter qualify...
• Texas Section 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....
• Texas Section 202.061 - Tax Credit For Enhanced Efficiency Equipment
  (a) In this section: (1) "Enhanced efficiency equipment" means equipment used in the production of oil that reduces the energy used to produce a barrel...

SUBCHAPTER C RECORDS

• Texas Section 202.063 - Exemption Of Oil Incidentally Produced In Association With The Production Of Geothermal Energy
  Oil incidentally produced in association with the production of geothermal energy is not subject to the tax imposed by this chapter. Added by Acts 2009,...
• Texas Section 202.101 - Producer's Records
  A producer shall keep accurate records in the state. The records must show: (1) the counties in which the producer produces oil; (2) the names...
• Texas Section 202.102 - First Purchaser's Records
  A first purchaser shall keep accurate records in the state. The records must show: (1) the name and address of each producer from which the...
• Texas Section 202.103 - Subsequent Purchaser's Records
  A subsequent purchaser shall keep accurate records in the state. The records must show: (1) the name and address of each person who sells oil...
• Texas Section 202.104 - Royalty Owner's Records
  The owner of a royalty interest shall keep: (1) a record of all money received as royalty from each producing leasehold in the state; and...

SUBCHAPTER D PAYMENTS

• Texas Section 202.105 - Carrier's Records
  A carrier shall keep accurate monthly records of oil the carrier transports for hire, for itself or for its owners. The records shall be kept...
• Texas Section 202.151 - Tax Due
  The tax imposed by this chapter is due at the office of the comptroller on the 25th day of each calendar month for oil produced...
• Texas Section 202.152 - 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. 1739,...
• Texas Section 202.153 - First Purchaser To Pay Tax
  (a) A first purchaser shall pay the tax imposed by this chapter on oil that the first purchaser purchases from a producer and takes delivery...
• Texas Section 202.154 - Producer To Pay Tax On Oil Not Sold
  If the producer does not sell oil produced in the same month it is produced, the producer shall pay the tax imposed by this chapter...
• Texas Section 202.155 - Purchaser To Pay Tax On Oil From Property Under Legal Constraint
  (a) A purchaser shall pay the tax imposed by this chapter on oil purchased from property in bankruptcy, receivership, covered by an assignment, or subject...

SUBCHAPTER E REPORTS

• Texas Section 202.156 - Tax Borne Ratably
  The tax shall be borne ratably by all interested parties, including royalty interests. Producers or purchasers of oil, or both, are authorized and required to...
• Texas Section 202.201 - Producer's Report
  (a) A producer authorized by the comptroller to remit the tax due shall file with the comptroller, on or before the 25th day of each...
• Texas Section 202.202 - First Purchaser's Report
  (a) On or before the 25th day of each calendar month, each first purchaser or his authorized agent shall file a report with the comptroller....
• Texas Section 202.204 - Reports Of Carrier
  A carrier shall provide information and file reports on the movements of oil if requested by the comptroller as often as required by the comptroller....

SUBCHAPTER F LIABILITY FOR TAX

• Texas Section 202.205 - Transfer Of Ownership
  (a) If an oil-producing lease is transferred, or is to be transferred, the producer transferring the lease shall note the name and address of the...
• Texas Section 202.251 - Liability Of Producer And Purchaser
  The tax imposed by this chapter is the primary liability of the producer and is a liability of the first purchaser and each subsequent purchaser....

SUBCHAPTER G ENFORCEMENT

• Texas Section 202.252 - 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 oil and fails...
• Texas Section 202.301 - Delinquent Taxes: 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,...
• Texas Section 202.302 - Tax Lien
  The state has a prior and preferred lien for the amount of the taxes, penalties, and interest imposed by this chapter on: (1) the oil...
• Texas Section 202.303 - Forced Sale By Officer
  (a) A peace officer may levy on oil for which the tax imposed by this chapter is due and unpaid by notice to the owner...
• Texas Section 202.304 - 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...
• Texas Section 202.305 - Unlawful Removal Of Oil
  On notice from the comptroller, no person may remove oil from a lease in this state if the owner or operator of the lease has...
• Texas Section 202.306 - Inspector Has Free Access
  A person appointed by the Railroad Commission of Texas and holding the commission's certificate authorizing him to inspect oil wells, oil leases, pipelines, or railroad...

SUBCHAPTER H CLASSIFICATION OF TAX AND ALLOCATION OF REVENUE

• Texas Section 202.307 - 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 he...
• Texas Section 202.351 - Occupation Tax
  The tax imposed by this chapter is an occupation tax. Acts 1981, 67th Leg., p. 1743, ch. 389, Sec. 1, eff. Jan. 1, 1982.
• Texas Section 202.352 - Tax Set Aside
  One-half of one percent of the tax collected under this chapter shall be deposited in the state treasury for the use of the comptroller to...
• Texas Section 202.353 - Allocation Of Revenue
  After deducting the amount required to be deposited by Section 202.352 of this code, the comptroller shall deposit one-fourth of the revenue collected from the...
• Texas Section 202.354 - Dedication To Texas Tuition Assistance Grant Program
  The revenue collected from any incremental production from a qualifying lease, as those terms are defined by Section 202.057, and deposited to the general revenue...

Last modified: September 28, 2016