Ever Heard Of Severance Tax? It's How Texas Makes Money Off Oil And Gas Drilling.
Taxes. They tend be something many of us avoid thinking about until a certain time of the year. But they are, of course, an everyday reality when you buy something at the store or when you fill up your gas tank.
But Texas taxes on oil and gas aren’t just limited to the local filling station. They’re also applied to the pumping of gas from out of the ground. Every last bit of oil and gas that comes out of Texas Land helps put money into the state budget. And because of the recent drilling boom, tax revenue from oil and gas is up 50 percent from last year.
The latest estimates from the Texas comptroller’s office show the state expects to collect a combined $6.7 billion from oil and gas industry taxes for the upcoming 2018-19 budget cycle. This money comes from something called severance tax.
Roman McAllen is the historic preservation officer in Denton County.
“The severance tax is a tax set by our Texas Legislature, and it has to do with the extraction of non-renewable resources from Texas land,” McAllen says.
Read more: http://www.texasstandard.org/stories/ever-heard-of-severance-tax-its-how-texas-makes-money-off-oil-and-gas-drilling/
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