August 10, 2022

Production taxes break new records in June

Texas Comptroller Glen Hegar recently released tax collections data reveals that Texas oil and natural gas producers continue to pay record amounts in production taxes to the state of Texas, reaching new highs in June. Image for illustrative purposes
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Texas Border Affairs

AUSTIN, TX – Texas Comptroller Glen Hegar recently released tax collections data reveals that Texas oil and natural gas producers continue to pay record amounts in production taxes to the state of Texas, reaching new highs in June.

According to Comptroller data, in June Texas oil producers paid $679 million, the highest monthly collection on record and up 87% from June 2021. Natural gas producers also hit a record high in June with $439 million paid, up 176% from last year. June. These monthly amounts are remarkable in that last month’s revenue alone – totaling $1.12 billion – was above average. annual revenue from taxes on oil and natural gas production was $1.01 billion just a few decades ago.

“All Texans benefit from a robust oil and gas industry that provides hundreds of thousands of well-paying jobs and contributes billions to our state’s economy, essential services and public education, whether you live in the oil patch or not,” said Todd Staples, president of the Texas Oil and Gas Association. “These historic employment and tax revenue numbers continue to signal the resilience of our industry which is committed to meeting our energy needs, strengthening our national security and achieving continued environmental progress.”

Courtesy Image

Production taxes are just one of many taxes the Texas oil and gas industry pays. The industry also pays billions in property taxes on everything from mining properties and pipelines to refineries and gas stations. State and local sales taxes also apply to many purchases made by the industry, bringing in billions more. There are other taxes, including the state franchise tax and gross revenue taxes imposed on natural gas utilities and pipelines, and millions of dollars in fees imposed by the state government. .

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