Taxpayers may request natural gas refunds based on one or more of the following reasons:
To request a refund from the Comptroller's office, you must:
Additional requirements may apply for the claim to be valid:
Taxpayers are required to file credit-amended reports to recoup taxes previously paid on a lease for a specific report period for all statutory exemptions. These reports must have a postmark date within four years from the due date of a report period. Examples of statutory exemptions are low-producing well, reduced tax rate for high cost gas and two-year inactive well.
All of the following criteria must be met to obtain a credit from leases approved for reduced tax rate for high cost gas:
Visit our Natural Gas Severance Taxes Audit Policy on Marketing Costs webpage for general concepts on marketing cost deductions and a list of allowable and not allowable marketing costs claimed.
Establishing the producer's actual marketing costs and subtracting these costs from the producer's gross cash receipts from the sale of the gas determines the market value at the mouth of the well, or wellhead value.
A producer can use one of the following methods to file marketing cost credits.
Standard reporting requirements, including the requirements that the party that paid the tax file amended returns, apply. This can be accomplished by the producer if the purchaser signs Form 10-341, Limited Power of Attorney (PDF) and Form 00-985, Assignment of Rights to Refund (PDF).
To receive a refund of purchaser-paid taxes, producers must submit the following documents for all pending and future refund claims for marketing costs:
After these credit-amended reports are filed to a purchaser's account, and provided the credit-amended reports do not contain critical errors, the credit amounts will be validated, deemed refundable and then transferred to the producer's account for refund purposes. In some situations, credit amounts are not refundable from a purchaser's account, such as:
If a producer files credit-amended reports for marketing cost credits that are processed to a purchaser's account, he or she must include all of the following:
So that we can record and track refund requests, taxpayers should submit the original refund request letter and required documents to email@example.com or mail to:Texas Comptroller of Public Accounts
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