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 tax liabilities that accrued before its effective date, ensuring that any existing obligations remain enforceable under the former law. The repeal of the tax reduction will apply to gas produced on or after the effective date of the Act, which is set for September 1, 2025.

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