The bill, S.B. No. 1158, proposes the repeal of the temporary tax reduction for certain high-cost gas by amending the Natural Resources Code and repealing a specific section of the Tax Code. Specifically, it removes Section 201.057 from the Tax Code, which previously provided a tax reduction for high-cost gas. Additionally, it clarifies that the exemptions and reductions outlined in other sections of the Tax Code do not impact the fee imposed by the Natural Resources Code.

Furthermore, the bill stipulates that the changes made by this Act will not affect any tax liabilities that accrued before its effective date of September 1, 2025. It ensures that any tax liabilities that existed prior to this date will remain enforceable under the former law, while also stating that the repealed tax reduction will not apply to gas produced on or after the effective date, regardless of any prior approvals for tax reductions.

Statutes affected:
Introduced: Natural Resources Code 81.117, Tax Code 201.057 (Tax Code 201, Natural Resources Code 81)