HBA-RBT H.B. 1335 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1335 By: Chisum Ways & Means 4/7/1999 Introduced BACKGROUND AND PURPOSE The occupation tax on oil well service providers applies to certain work performed within the well bore of an oil or a gas well. The tax was enacted in 1941 and was revised once in 1951. In fiscal year 1998, there were 99 taxpayers who paid taxes under the oil well service provider tax. Eighteen taxpayers paid more than $10,000, and three of these paid more than $1 million. Approximately 85 percent of the tax is paid by the three largest taxpayers. The tax raised almost $8.5 million in 1998 and $7 million in 1997. Oil well service contractors currently have 70 percent of their capital equipment idle. H.B. 1335 repeals the tax and eases the burden on a segment of the oil and gas industry currently in economic jeopardy. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Repealer: Subchapter E, Chapter 191, Tax Code (Oil Well Service). SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.