Texas Tax Changes - October 2024
Week Of 10.07.2024
The Texas Comptroller of Public Accounts is providing Texas tax filing and payment extension relief to out-of-state taxpayers who are eligible for IRS disaster relief due to Hurricane Helene.
The IRS announced disaster tax relief for all individuals and businesses affected by the hurricane, including the entire states of Alabama, Georgia, North Carolina, and South Carolina, and parts of Florida, Tennessee, and Virginia. Upon request, the Comptroller will grant a 90-day extension, from the due date, for Texas taxes (excluding property taxes). Additional time may be granted for certain tax types, including franchise tax, upon request.
Week Of 09.30.2024
Texas Oil and Gas Tax Exclusions and Credits for August 2024:
- Oil Production:
- No Exclusion for Franchise Tax: The average closing price of West Texas Intermediate crude oil for August 2024 was $75.43 per barrel. This means that oil revenue from qualified low-producing oil wells is not eligible for an exclusion from the franchise tax.
- No Credit for Production Tax: The average taxable price of oil for the 3-month period from May 1, 2024 to July 31, 2024 was $49.14 per barrel. Therefore, oil produced in August 2024 from a qualified low-producing oil lease is not eligible for a credit on the oil production tax.
- Gas Production:
- Exclusion for Franchise Tax: The average closing price of gas for August 2024 was $2.09 per MMBtu. This means that gas revenue from qualified low-producing gas wells is eligible for an exclusion from the franchise tax.
- 100% Credit for Production Tax: The average taxable price of gas for the 3-month period from May 1, 2024 to July 31, 2024 was $1.15 per mcf. This means that gas produced in August 2024 from a qualified low-producing well is eligible for a 100% credit on the natural gas production tax.
These tax benefits are based on the average prices of oil and gas during specific periods, as determined by the Texas Comptroller.
Week Of 10.07.2024
Texas General Administrative Provisions—Texas provides filing and payment relief for taxpayers affected by Hurricane Helene.
The Texas Comptroller of Public Accounts is providing Texas tax filing and payment extension relief to out-of-state taxpayers who are eligible for IRS disaster relief due to Hurricane Helene. The IRS announced disaster tax relief for all individuals and businesses affected by the hurricane, including the entire states of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia. Upon request, the Comptroller will grant a 90-day extension, from the due date, for Texas taxes (excluding property taxes). Additional time may be granted for certain tax types, including franchise tax, upon request. (Recent Disasters Affecting Texas Taxpayers, Hurricane Helene, September 2024, 10/04/2024.)
Texas Property Tax—U.S. Supreme Court action—petition for certiorari denied in Texas case.
The U.S. Supreme Court has denied a request to review a Texas Supreme Court decision which held that a statute can never limit the time to challenge a judgment taken without constitutionally adequate notice. The question presented to the U.S. Supreme Court was whether a statute can limit the time to challenge a tax sale for lack of constitutionally adequate notice to the owner, provided that the statute does not unreasonably limit the aggrieved owner's time to enforce its rights. (Gill et al. v. Hill, Tex. S. Ct., Dkt. No. 22-0913, 04/26/2024, cert. denied, U.S. S. Ct. Dkt. No. 24-76, 10/07/2024.)
Texas Sales & Use Taxes—Texas issues guidance on local tax sourcing for mobile telecommunication services.
The Tax Policy Division of the Texas Comptroller's Office has provided guidance related to local tax sourcing for mobile telecommunication services, data plans, and tangible personal property. For audit periods through December 31, 2024, providers will be held harmless for incorrect sourcing of local tax on sales of mobile telecommunications services, tangible personal property, and data plans. Beginning January 1, 2025, providers must use the agency’s Sales Tax Rate Locator and Publication 96-339 to source local tax to be considered to have exercised due diligence and be held harmless. Providers who collected local sales tax from a jurisdiction that has not voted to impose sales tax must refund the local sales tax to their customers or remit the local sales tax as tax collected in error. Tangible personal property should be sourced according to the standard sourcing provisions in Texas Tax Code Chapter 321. Separately stated charges for data plans are no longer taxable as of July 1, 2020, per the Internet Tax Freedom Act of 2016. Tex. Admin. Code § 3.344 (Telecommunications Services) will be amended to address providers responsibilities of due diligence. (Memorandum, Local Tax Sourcing for Mobile Telecommunication Services, 10/02/2024.)
Week Of 09.30.2024
Texas Franchise Tax—Texas oil and gas exclusions for August 2024.
The Texas Comptroller of Public Accounts has announced the certification of the average taxable price of gas and oil for August 2024 in Texas Register, Vol. 49, No. 39, 09/27/2024. Since the Comptroller has determined that the average closing price of West Texas Intermediate crude oil for the month of August 2024 is $75.43 per barrel, a taxable entity cannot exclude total revenue received from oil produced during the month of August 2024 from a qualified low-producing oil well. Since the Comptroller has determined that the average closing price of gas for the month of August 2024 is $2.09 per MMBtu, a taxable entity will exclude total revenue received from gas produced during the month of August 2024 from a qualified low-producing gas well.
Texas Fuels & Minerals Taxes—Texas oil and gas exemptions for August 2024.
The Texas Comptroller of Public Accounts has announced the certification of the average taxable price of gas and oil for August 2024 in Texas Register, Vol. 49, No. 39, 09/27/2024. Since the Comptroller has determined that the average taxable price of oil for reporting period August 2024 is $49.14 per barrel for the 3-month period beginning on May 1, 2024, and ending July 31, 2024, oil produced during the month of August 2024 from a qualified low-producing oil lease is not eligible for a credit on the oil production tax. Since the Comptroller has determined that the average taxable price of gas for reporting period August 2024 is $1.15 per mcf for the 3-month period beginning on May 1, 2024, and ending July 31, 2024, gas produced during the month of August 2024 from a qualified low-producing well is eligible for a 100% credit on the natural gas production tax.
Week Of 10.07.2024
Texas General Administrative Provisions—Texas provides filing and payment relief for taxpayers affected by Hurricane Helene.
The Texas Comptroller of Public Accounts is providing Texas tax filing and payment extension relief to out-of-state taxpayers who are eligible for IRS disaster relief due to Hurricane Helene. The IRS announced disaster tax relief for all individuals and businesses affected by the hurricane, including the entire states of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia. Upon request, the Comptroller will grant a 90-day extension, from the due date, for Texas taxes (excluding property taxes). Additional time may be granted for certain tax types, including franchise tax, upon request. (Recent Disasters Affecting Texas Taxpayers, Hurricane Helene, September 2024, 10/04/2024.)
Texas Property Tax—U.S. Supreme Court action—petition for certiorari denied in Texas case.
The U.S. Supreme Court has denied a request to review a Texas Supreme Court decision which held that a statute can never limit the time to challenge a judgment taken without constitutionally adequate notice. The question presented to the U.S. Supreme Court was whether a statute can limit the time to challenge a tax sale for lack of constitutionally adequate notice to the owner, provided that the statute does not unreasonably limit the aggrieved owner's time to enforce its rights. (Gill et al. v. Hill, Tex. S. Ct., Dkt. No. 22-0913, 04/26/2024, cert. denied, U.S. S. Ct. Dkt. No. 24-76, 10/07/2024.)
Texas Sales & Use Taxes—Texas issues guidance on local tax sourcing for mobile telecommunication services.
The Tax Policy Division of the Texas Comptroller's Office has provided guidance related to local tax sourcing for mobile telecommunication services, data plans, and tangible personal property. For audit periods through December 31, 2024, providers will be held harmless for incorrect sourcing of local tax on sales of mobile telecommunications services, tangible personal property, and data plans. Beginning January 1, 2025, providers must use the agency’s Sales Tax Rate Locator and Publication 96-339 to source local tax to be considered to have exercised due diligence and be held harmless. Providers who collected local sales tax from a jurisdiction that has not voted to impose sales tax must refund the local sales tax to their customers or remit the local sales tax as tax collected in error. Tangible personal property should be sourced according to the standard sourcing provisions in Texas Tax Code Chapter 321. Separately stated charges for data plans are no longer taxable as of July 1, 2020, per the Internet Tax Freedom Act of 2016. Tex. Admin. Code § 3.344 (Telecommunications Services) will be amended to address providers responsibilities of due diligence. (Memorandum, Local Tax Sourcing for Mobile Telecommunication Services, 10/02/2024.)
Week Of 09.30.2024
Texas Franchise Tax—Texas oil and gas exclusions for August 2024.
The Texas Comptroller of Public Accounts has announced the certification of the average taxable price of gas and oil for August 2024 in Texas Register, Vol. 49, No. 39, 09/27/2024. Since the Comptroller has determined that the average closing price of West Texas Intermediate crude oil for the month of August 2024 is $75.43 per barrel, a taxable entity cannot exclude total revenue received from oil produced during the month of August 2024 from a qualified low-producing oil well. Since the Comptroller has determined that the average closing price of gas for the month of August 2024 is $2.09 per MMBtu, a taxable entity will exclude total revenue received from gas produced during the month of August 2024 from a qualified low-producing gas well.
Texas Fuels & Minerals Taxes—Texas oil and gas exemptions for August 2024.
The Texas Comptroller of Public Accounts has announced the certification of the average taxable price of gas and oil for August 2024 in Texas Register, Vol. 49, No. 39, 09/27/2024. Since the Comptroller has determined that the average taxable price of oil for reporting period August 2024 is $49.14 per barrel for the 3-month period beginning on May 1, 2024, and ending July 31, 2024, oil produced during the month of August 2024 from a qualified low-producing oil lease is not eligible for a credit on the oil production tax. Since the Comptroller has determined that the average taxable price of gas for reporting period August 2024 is $1.15 per mcf for the 3-month period beginning on May 1, 2024, and ending July 31, 2024, gas produced during the month of August 2024 from a qualified low-producing well is eligible for a 100% credit on the natural gas production tax.