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.

The bill also includes provisions that ensure the repeal does not affect tax liabilities that accrued before the effective date of the Act, maintaining the enforcement of the former law for those taxes. The changes will take effect on September 1, 2025, meaning that any gas produced on or after this date will not benefit from the repealed tax reduction, even if prior approvals for reductions were in place.

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