Texas Comptroller Glen Hegar’s 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.
Texas Insider Report: AUSTIN, Texas – “All Texans benefit from a robust Oil & Natural Gas Industry. It provides 100s of 1,000s of good-paying jobs and pays billions toward our Texas 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.
Texas Comptroller Glen Hegar (right,) recently released June's Tax Collections Data, which reveals that Texas Oil & Natural Gas Producers continue to pay record amounts in production taxes to the State of Texas, reaching new highs in June.According to the Comptroller’s data for June, Texas oil producers paid $679 million, the highest monthly collection on record and up 87% from June 2021.
Natural gas producers also reached a record high in June at $439 million paid, up 176% from last June.
These monthly amounts are remarkable in that last month’s revenues alone – totaling $1.12 billion – were greater than the average annual revenue from oil and natural gas production taxes at $1.01 billion just a few short decades ago.
“These historic job and tax revenue numbers continue to signal the resiliency of our industry which is committed to meeting our energy needs, fortifying our national security, and achieving continued environmental progress,” noted Staples (right.)Production taxes are only one of the many taxes that the Texas oil and natural gas industry pays. The industry also pays billions in property taxes on all assets from producing minerals properties to pipelines to refineries and gas stations. State and local sales taxes also apply to many purchases made by the industry, raising billions more.
There are further taxes, including the state’s franchise tax and gross receipts taxes imposed on natural gas utilities and pipelines, and millions of dollars in fees imposed by state government.
