Pub. 60 2019-2020 Issue 3

15 R • TEXAS COMPTROLLER OF PUBLIC ACCOUNTS Compound Annual Growth Rate (Fiscal 2009-2019): 16% ION TAX E D 1 9 0 5 x is a severance tax ude oil from Texas mained unchanged an any other major ent of the revenue ated to the Foundation the remaining amount al Revenue. Portions ted into General sferred to the on Fund and the State 15, the Legislature lation tax. UCTIONTAX COLLECTIONS All Funds, Excluding Trusts (billions) TAX FUND FISCAL2019 OilProductionTax GeneralRevenueFund 1 $3,886,822,399 OilRegulationTax 2 GeneralRevenueFund $1,479 TOTAL 3 $3,886,823,879 MAJOR EXEMP TIONS 5 Special tax rate for wells approved as enhanced oil recovery projects; 10-year exemption for wells certified as inactive. RANK EXEMPTION FISCAL2020EST.VALUE (MILLIONS) 1 New or expanded enhanced recovery project $45.4 2 Enhanced recovery projects using anthropogenic carbon dioxide $2.7 3 Inactive wells $0.2 H I G H L I G H T S : FOOTNOTES 1 Twenty-fivepercent is statutorilydedicated topubliceducation fundingandallocated to the FoundationSchoolAccount. 2 The0.1875cents-per-barreloil regulation taxwasabolishedeffectiveSept.1,2015. 3 Maynot sum to totaldue to rounding. 4 Or4.6centsoneachbarrel foroilproduction,whichever isgreater. 5 Estimated valuesofmajorexemptions infiscal2020and initialdistributionof totaloil production tax revenue infiscal2021,asprojected in the November2018TaxExemptionsand Tax Incidence report. Total Value of All Exemptions = $48.3 MILLION HISTORICAL VOLATILIT Y Year-over-year Change, All Funds, Excluding Trusts -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 2013 2012 2011 2010 2017 2018 2019 2016 2015 2014 FISCAL 14.0% 60.9% 23.6% -40.8% 14.6% -25.7% 29.5% 42.2% 42.8% 46.0% $0 $1 $2 $4 $5 $3 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $3.95 ACTUAL ESTIMATED 6.5% tage of Collection L 2019 cluding Trusts BILLION REVENUE FISCAL 2019 $ 3.89B REVENUE BY SOURC E WHO PAYS? 5 BUSINESS 100% CONSUMER 0% STATE RATE 4.6% 4 LOCAL RATE NONE FEDERAL RATE NONE OF MARKET VALUE 14 G L E N N H E G A R • TEXAS COMPTROLLER OF PUBLIC OIL PRODUCTION TAX 1 Twenty- Foundat 2 The 0.18 3 May not 4 Or 4.6 ce 5 Estimate product Tax Incid 6.5% Percentage of Total Tax Collection FISCAL 2019 All Funds, Excluding Trusts $3.89 BILLION 14 G L E N N H E G A R • TEXAS COMPTROLLER OF PUBLIC ACCOUNTS Compound Annual Growth Rat O I L PRODUC T I ON TAX E N A C T E D 1 9 0 5 T he oil production tax is a severance tax on the removal of crude oil from Texas land. The rate has remained unchanged since 1951, longer than any other major state tax. Twenty-five percent of the revenue from this tax is allocated to the Foundation School Account, with the remaining amount deposited into General Revenue. Portions of the amount deposited into General Revenue may be transferred to the Economic Stabilization Fund and the State Highway Fund. In 2015, the Legislature repealed the oil regulation tax. OIL PRODUCTION TAX COLLEC T IONS All Funds, Excluding Trusts (billions) TAX FUND FISCAL 2019 Oil Production Tax General Revenue Fund 1 $3,886,822,399 Oil Regulation Tax 2 General Revenue Fund $1,479 TOTAL 3 $3,886,823,879 MAJOR EXEMP Special tax rate for wells approved as en 10-year exemption for wells ce RANK EXEMPTION 1 New or expanded enhanced recovery pr 2 Enhanced recover projects using anthropogenic carb dioxide 3 Inactive wells FOOTNOTES 1 Twenty-five percent is statutorily dedicated to public education funding and allocated to the Foundation School Account. 2 The 0.1875 cents-per-barrel oil regulation tax was abolished effective Sept. 1, 2015. 3 May not sum to total due to rounding. 4 Or 4.6 cents on each barrel for oil production, whichever is greater. 5 Estimated values of major exemptions in fiscal 2020 and initial distribution of total oil production tax revenue in fiscal 2021, as projected in the November 2018 Tax Exemptions and Tax Incidence report. Total Value of All Exem $48.3 MILLI H I STOR I CAL VO Year-over-year Change, All Fun -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 2013 2012 2011 2010 2 2014 FISCAL 14.0% -25 29.5% 42.2% 42.8% 46.0% $0 $1 $2 $4 $5 $3 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ACTUAL 6.5% Percentage of Total Tax Collection FISCAL 2019 All Funds, Excluding Trusts $3.89 BILLION REVENUE BY SOURC E T he oil production tax is a severance tax on the removal of crude oil from T xas land. The rate has remained unchanged since 1951, longer than any other major state tax. Twenty-five percent of the revenue from this tax is allocated to the Foundation School Account, with the remaining amount deposited into General Revenue. Po tions of the amount deposited into General Revenue may be transferred to the Economic Stabilization Fund and the State Highway Fund. In 2015, the Legislature repealed the oil regulation tax. ENACTED 1905 THIS REPORT IS ALSO AVAILABLE ONLINE AT comptroller.texas.gov/transparency/revenue/resources.php.