Natural gas taxes are primarily paid by a producer. Depending on the contract between producer and purchaser, both parties can agree that a purchaser will pay the natural gas taxes.
For monthly filers, reports are due on the 20th day of the 2nd month following the production month (for example, April 20 for February activity).
For yearly filers, if qualified, reports are due on February 20 for the preceding year..
Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.
To ensure crude oil and natural gas taxpayers have access to qualified credits as quickly as possible, the Comptroller’s office will refund credits generated, upon verification. Learn more.
Get instructions and examples for reporting a low-producing well exemption.
A reduced tax rate can apply if a well qualifies for an exemption that was certified by the Texas Railroad Commission. Certified exemptions and their reduced tax rates are:
When an oil or gas well qualifies for multiple severance tax incentives, a taxpayer can choose which incentive is most favorable. For example, some gas wells now qualify for the low-producing well and high-cost gas tax incentives at the same time. Depending on the average price of gas, the low-producing well tax incentive can be lower than the high-cost gas reduced tax rate. Other months, the high-cost gas incentive might be more favorable.
A taxpayer can choose the tax incentive that has a lower tax rate for a gas well for each individual report period, but cannot report both for the same gas well for the same report period.
Effective April 27, 2015, the Comptroller’s office eliminated all reported error messages considered noncritical. This means error messages labeled noncritical will no longer be displayed on the Crude Oil and Natural Gas Web Inquiry System, making it easier for taxpayers to review and correct all critical errors.
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 Google Chrome, Microsoft Internet Explorer and Apple Safari.