Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts, Glenn Hegar

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Contact: Allen Spelce
R.J. DeSilva
(512) 463-4070

For Immediate Release
December 20, 2007

Comptroller Launches New Oil and Gas Production Tax Reporting System

(AUSTIN) — The Comptroller’s office has launched a new system for crude oil and natural gas taxes that has Web Inquiry capability. This system will offer enhancements and customer service features for industry taxpayers when filing reports due after Jan. 1, 2008. The Comptroller’s up-to-the-minute reporting system switches from a manual to an automatic process to validate legislative incentive refunds. This system will help taxpayers prepare for changes to their reports and improve the report handling processes.

“This new tax reporting system will offer greater accountability of taxes reported, collected and refunded,” said Texas Comptroller Susan Combs. “The changes allow our office to more efficiently provide information for taxpayers to file original and amended tax reports.”

Two of the major changes in the new system include real time processing and Web access. Users will be able to see changes in the system almost immediately upon their request, rather than taking days or even weeks as in the past. For the first time, taxpayers can go online to view details about outstanding liability and credit balances, payment and transfer records, refunds, reported data and report errors. Producers can retrieve their account history and search the site for drilling permit numbers, lease names and numbers, approved exemptions and taxpayer information. The new system will also automatically verify legislative incentive refund requests. Payment and collection records will be tracked separately for purchasers and producers, and taxpayers have the option to amend data using a locator number.

The Comptroller’s office converted more than 1.1 billion records to this new system for approximately 12,260 active taxpayers and saved storage space by archiving 10 years worth of data and eliminating two systems that supported the previous oil and gas systems.

In early December, the Comptroller’s office conducted six preview seminars with approximately 100 industry representatives, giving these taxpayers an opportunity to try out the new system. Taxpayers can learn more about the new system in a self-paced presentation available at the Window on State Government Web site that explains the changes to the crude oil and natural gas production tax reports.

The crude oil tax is imposed on the production of crude oil in Texas at its market value. The natural gas tax is imposed on the market value of gas produced and saved in the state by the producer. In fiscal 2007, the state generated about $2.7 billion in oil and natural gas production tax revenue. These production taxes also include regulatory taxes and oilfield cleanup regulatory fees.

Original and amended tax report forms in the old format will not be accepted after Dec. 31, 2007, unless a taxpayer is granted an extension. Taxpayers will need to use the 3.0 version of the Comptroller’s EDI software to import data for multiple reporting periods. For more information, please visit http://www.window.state.tx.us/taxinfo/crude/ngco_index.html.


Required Plug-ins

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Microsoft Internet Explorer, Google Chrome and Apple Safari.