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.