Oil And Natural Gas Production Taxes Over $1Bn In September
Texas Comptroller Glen Hegar’s recently released tax collections data reveals oil and natural gas producers paid more than $1 billion in production taxes in September.
According to the Comptroller’s September data, Texas oil producers paid $552 million in production taxes, up 41 percent from September 2021. Natural producers paid $480 million, up 91 percent from September 2021.
“The oil and natural gas industry is meeting our energy needs more responsibly than any other nation in the world, while directly funding public education, essential services, and our state’s robust Rainy Day Fund,” said Todd Staples, president of the Texas Oil & Gas Association. “Oil and natural gas are irreplaceable in our lives, our economy, and our future.”
The Texas Oil & Gas association added that production taxes were only one of the many taxes that the Texas oil and natural gas industry pays.
The industry also pays billions in property taxes on all assets from producing minerals properties to pipelines to refineries and gas stations.
State and local sales taxes also apply to many purchases made by the industry, raising billions more. There are further taxes, including the state’s franchise tax and gross receipts taxes imposed on natural gas utilities and pipelines, and millions of dollars in fees imposed by the state government.
Total state tax revenue in September, according to Comptroller Hegar, totaled $3.69 billion – 17.2 percent more than in September 2021. The majority of September sales tax revenue is based on sales made in August and remitted to the agency in September.
“State sales tax collections continued to climb rapidly in September, with solid growth in receipts from all major economic sectors. Surging receipts from nonretail sectors indicate that the exceptionally strong spending by businesses in recent months continued unabated. Spurred in part by inflation in building materials and other business input prices, the mining, construction, manufacturing, and wholesale trade sectors have each exhibited double-digit growth in sales tax remittances for 10 or more consecutive months.”
“Receipts from retail trade and restaurants grew moderately and at less than the rate of consumer price inflation, reflecting potentially higher shares of household budgets being allocated to rent, groceries, and transportation expenses — items not subject to sales tax — in response to inflation. Receipts from online shopping, building materials, home improvement stores, and automotive dealers and parts stores all had double-digit increases compared with last September. But receipts from clothing, electronics and appliance, and furniture and home furnishings stores were little changed, while receipts from general merchandisers and sporting goods and hobby stores were down from a year ago,” Hegar said.
Total sales tax revenue for the three months ending in September 2022 was up 14.9 percent compared with the same period a year ago. It is worth noting that sales tax is the largest source of state funding for the state budget, accounting for 56 percent of all tax collections.
Apart from the $552 million from oil production tax and $480 million from natural gas production tax, Texas collected motor vehicle sales and rental taxes worth $616 million, up 13 percent from September 2021; motor fuel taxes worth $328 million, up 2 percent from September 2021; hotel occupancy tax worth $57 million, up 11 percent from September 2021; and alcoholic beverage taxes worth $138 million, up 13 percent from September 2021.
To contact the author, email email@example.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Editor | Rigzone