Texas Tax Code

§ 201.101 — MARKET VALUE

TX § 201.101Title 2. STATE TAXATION · Part I. SEVERANCE TAXES · Ch. 201. GAS PRODUCTION TAX · Art. C. DETERMINING VALUE

Statute text

(a)The market value of gas is its value at the mouth of the well from which it is produced. The value of gas at the mouth of the well is determined by ascertaining the producer's actual marketing costs and subtracting those costs from the producer's gross cash receipts from the sale of the gas.

(b)Marketing costs are the costs incurred by the producer to get the gas from the mouth of the well to the market, including:

(1)costs for compressing the gas sold;

(2)costs for dehydrating the gas sold;

(3)costs for sweetening the gas sold; and

(4)costs for delivering the gas to the purchaser.

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Legislative history

Acts 1981, 67th Leg., p. 1730, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 111, eff. Sept. 1, 2003.