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 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 relevant section of the Natural Resources Code.

The bill ensures that any tax liabilities incurred before its effective date of September 1, 2025, remain enforceable under the previous law, meaning that the repeal will not retroactively affect taxes owed prior to that date. However, it establishes that the repealed tax reduction will not apply to gas produced on or after the effective date, even if a tax reduction had been approved prior to the repeal.

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