Howdy folks, and welcome back to the Texas Tax Roundup. This August was a barren wasteland of sun and heat, but the Comptroller still managed to wrangle up some interesting tax issues. Let’s see what they came up with!

Rules

Proposed Rules

Battery Fees

34 Tex. Admin. Code § 3.711 (48 Tex. Reg. 4379 (Aug. 11, 2023))—The Comptroller proposes amendments to this rule that primarily implement legislative changes which require marketplace providers to collect fees related to the sale of lead-acid batteries.

Notable additions to the State Tax Automated Research (“STAR”) System

Natural Gas Production Tax

Determining Market Value

Comptroller’s Decision No. 118,189 (2023)—The ALJ upheld the Comptroller’s partial denial of a natural gas producer’s refund claim of natural gas production based on the producer’s amended marketing costs that included “hot oil treating, gas meter testing and inspection, electric repair, electrical installation, electrical material, valves and connectors, gas pipeline, ES electrical installation, engineering and patriot supervision, electrical material and automation, and gas flowline and installation.” The natural gas production tax is 7.5% of the market value of gas produced and saved in the state by the producer.[1] The market value of gas is its value at the mount of the well from which it is produced.[2] Market value is determined by subtracting the producer’s actual marketing costs from the producer’s gross receipts from the sale of the gas.[3] Marketing costs include: (1) costs for compressing the gas sold; (2) costs for dehydrating the gas sold; (3) costs for sweetening the gas sold; and (4) costs for delivering the gas to the purchaser.[4] Marketing costs do not include: (1) costs incurred in producing the gas; (2) costs incurred in normal lease separation of the oil or condensate; (3) insurance premiums on the marketing facility.[5] The producer in this hearing did not provide any evidence of which of its claimed costs were allowable as marketing costs.

Motor Vehicle Sales And Use Tax

Seller-Financed Motor Vehicle Sales
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