84(R) - 2015
Relating to the repeal of the production taxes on crude petroleum and sulphur.
A fiscal note dated March 2, 2015 anticipates a two-year net negative impact to General Revenue Related Funds of ($10,947,000) through the biennium ending August 31, 2017.
Senate Bill 757 would repeal the tax on crude petroleum produced in the state of Texas, as well as the sulphur production tax.
The second chamber sponsor is Representative Drew Springer, author of a very similar bill left in House committee.
Vote Recommendation Notes
No amendments or modifications have been made to the bill
since we reported on it. We continue to support it.
First chamber recommendation:
Collecting taxes, as well as tax auditing and enforcement activities, cost money to the Comptroller's office and consequently to taxpayers. When a tax is not bringing significant revenues that offset the costs to taxpayers of collecting it, the tax should be repealed. The Comptroller's Office has indicated that the resources that are currently being used to collect the crude petroleum and the sulphur production taxes could be better used. The repeal of these taxes would favor a more efficient, limited government.
Repealing these taxes across the board would also have a positive effect on the economy: businesses that currently pay these inefficient taxes would be free to keep this money and use it for investments, job creations or increases in wages. Consequently, we support Senate Bill 757.