TAX CODE
SUBTITLE H. BUSINESS PERMIT TAXES
CHAPTER 191. MISCELLANEOUS OCCUPATION TAXES
SUBCHAPTER E. OIL WELL SERVICE
§ 191.081. DEFINITION. In this subchapter, "oil well
service" means cementing the casing seat of an oil or gas well,
shooting, fracturing, or acidizing the sands or other formations of
the earth in an oil or gas well, or surveying or testing the sands or
other formations or their contents in an oil or gas well by using
instruments or equipment at least a part of which are located in the
well bore when the survey or test is made.
Acts 1981, 67th Leg., p. 1723, ch. 389, § 1, eff. Jan. 1, 1982.
§ 191.082. TAX IMPOSED. (a) A tax is imposed on each
person who engages in the business of providing any oil well service
for another for consideration and who:
(1) owns, controls, or furnishes the tools,
instruments, and equipment used in providing the oil well service;
or
(2) uses any chemical, electrical, or mechanical
process in providing the service at any oil or gas well during and
in connection with the drilling and completion, or reworking or
reconditioning, of the well.
(b) The tax imposed by this subchapter does not apply to the
business of drilling or reworking an oil or gas well or to a service
incidental to that business performed by persons engaged in the
business of drilling or reworking.
Acts 1981, 67th Leg., p. 1723, ch. 389, § 1, eff. Jan. 1, 1982.
§ 191.083. TAX RATE. The rate of the tax imposed by this
subchapter is 2.42 percent of the gross amount received for service
after deduction for the reasonable value at the well of material
used, consumed, or expended in or incorporated into the well.
Acts 1981, 67th Leg., p. 1723, ch. 389, § 1, eff. Jan. 1, 1982.
§ 191.084. REPORT AND TAX PAYMENT. (a) A person
subject to the tax shall report the amount received from taxable
services during the preceding calendar month.
(b) The comptroller shall prescribe and furnish the form for
the report.
(c) The person subject to the tax shall pay the tax to the
comptroller at the comptroller's office in Austin on or before the
20th day of each month.
Acts 1981, 67th Leg., p. 1724, ch. 389, § 1, eff. Jan. 1, 1982.
§ 191.085. RECORD. (a) A person subject to the tax
shall keep a complete record of business transacted and any other
information the comptroller requires.
(b) The person shall keep the record open for four years for
inspection by the comptroller or the attorney general.
Acts 1981, 67th Leg., p. 1724, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1999, 76th Leg., ch. 1467, § 2.65, eff. Oct. 1,
1999.
§ 191.086. PENALTY. A person who violates this
subchapter forfeits and shall pay to the state a penalty of not less
than $25 nor more than $500. A separate offense is committed each
day on which a violation occurs.
Acts 1981, 67th Leg., p. 1724, ch. 389, § 1, eff. Jan. 1, 1982.
§ 191.087. FAILURE TO FILE REPORT OR PAY TAX. (a) If a
person taxed under this subchapter fails to file a report required
by this subchapter or to pay the tax imposed by this subchapter when
due, the person forfeits five percent of the amount of tax due as a
penalty. If the person then fails to file the report or pay the tax
within 30 days after the day on which the tax or report is due, the
person forfeits an additional penalty of five percent of the amount
of the tax.
(b) The minimum penalty imposed by this section is $1.
Acts 1981, 67th Leg., p. 1724, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 452, ch. 93, § 6, eff. Sept.
1, 1983.
§ 191.088. STATE TAX LIEN. The taxes, penalties,
interests, and costs that a person owes the state under this
subchapter are secured by a preferred lien, first and prior to other
existing liens, contract or statutory, legal or equitable, on all
property of the person used in the person's business.
Acts 1981, 67th Leg., p. 1724, ch. 389, § 1, eff. Jan. 1, 1982.
§ 191.089. PERMIT REQUIRED. A person subject to the tax
imposed by this subchapter shall acquire the permit required by
Section 182.086 of this code. Application, issuance, and
suspension of the permit are subject to Sections 182.087 and
182.088 of this code.
Acts 1981, 67th Leg., p. 1724, ch. 389, § 1, eff. Jan. 1, 1982.
SUBCHAPTER F. TAX RECEIPT
§ 191.101. TAX RECEIPT AS PERMIT. (a) The receipt from
the comptroller for tax payment is the permit to do business unless
a separate permit is required by law.
(b) A person may not receive a permit to do or continue to do
business in this state until the person pays the tax imposed by this
chapter.
Acts 1981, 67th Leg., p. 1724, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1997, 75th Leg., ch. 1423, § 19.119, eff. Sept.
1, 1997.
§ 191.102. DISPLAY OF PERMIT; PENALTY. (a) A person
commits an offense if the person, without displaying the receipt
for the tax imposed by this chapter, engages in a business taxed
under this chapter.
(b) An offense under this section is a misdemeanor
punishable by a fine of not more than $50.
Acts 1981, 67th Leg., p. 1724, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 4769, ch. 840, § 2, eff. Aug.
29, 1983.
SUBCHAPTER G. NATURE AND ALLOCATION OF TAX
§ 191.121. NATURE OF TAX. A tax imposed by this chapter
is an occupation tax.
Acts 1981, 67th Leg., p. 1725, ch. 389, § 1, eff. Jan. 1, 1982.
§ 191.122. ALLOCATION OF TAX. One-fourth of the revenue
collected under this chapter shall be deposited to the credit of the
foundation school fund and three-fourths to the credit of the
general revenue fund.
Acts 1981, 67th Leg., p. 1725, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1981, 67th Leg., p. 2778, ch. 752, § 9(h), eff.
Jan. 1, 1982; Acts 1984, 68th Leg., 2nd C.S., ch. 28, art. II, part
B, § 6, eff. Sept. 1, 1984.
SUBCHAPTER H. ATTORNEYS
§ 191.141. DEFINITIONS. In this subchapter:
(1) "Attorney" means a person licensed to practice law
in this state.
(2) "Tax year" means June 1 of one year through May 31
of the following year.
(3) "State bar" means the State Bar of Texas.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, § 1, eff.
June 1, 1995.
§ 191.142. IMPOSITION AND RATE OF TAX. (a) A tax is
imposed on each attorney.
(b) The tax rate is $200 per year to be paid in advance.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, § 1, eff.
June 1, 1995.
§ 191.143. TIME FOR PAYMENT OF TAX. (a) Except as
provided by Subsection (b), each attorney shall pay the tax for each
tax year on or before June 1 of the tax year.
(b) If a person is licensed to practice law after the
beginning of the tax year or resumes active status to practice law
after the beginning of the tax year, the person being licensed or
resuming active status shall pay the tax imposed by this subchapter
in proportion to the number of months for which the person will be
licensed during that tax year. If a person is licensed after the
beginning of a calendar month, the month in which the person is
licensed shall count as a month for purposes of payment of taxes
under this subsection.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, § 1, eff.
June 1, 1995.
§ 191.1431. METHOD OF COLLECTION. The supreme court
shall administer the collection of taxes under this subchapter.
Added by Acts 1995, 74th Leg., ch. 66, § 1, eff. June 1, 1995.
§ 191.144. EXEMPTIONS. The tax imposed by this
subchapter does not apply to:
(1) an attorney who is 70 years of age or older; or
(2) an attorney who has assumed inactive status under
rules governing the licensing of attorneys in this state.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, § 1, eff.
June 1, 1995.
§ 191.1441. SUSPENSION AND REINSTATEMENT. (a) The
supreme court shall suspend from the practice of law a person who
does not pay, within 90 days after the date it is due, the tax
imposed by this subchapter or a penalty relating to that tax.
(b) An attorney who is suspended under Subsection (a) shall
be reinstated on payment of the tax and any interest and penalties.
Added by Acts 1995, 74th Leg., ch. 66, § 1, eff. June 1, 1995.
§ 191.1442. PENALTY AND INTEREST. (a) A penalty of
five percent of the tax due shall be imposed on a person who fails to
pay the tax imposed or file a report required by this chapter when
due, and, if the person fails to file the report or pay the tax
within 30 days after the day on which the tax or report is due, an
additional five percent penalty shall be imposed.
(b) The yearly interest rate on delinquent tax imposed by
this chapter is 12 percent. Delinquent taxes draw interest
beginning 60 days from the due date.
Added by Acts 1995, 74th Leg., ch. 66, § 1, eff. June 1, 1995.
§ 191.1443. RULES. The state bar, with the approval of
the supreme court, shall have the authority to adopt policies and
rules for the administration and collection of the tax imposed by
this chapter and for the exemptions from that tax and shall have the
authority to compromise interest and penalties attributable to the
tax imposed by this chapter.
Added by Acts 1995, 74th Leg., ch. 66, § 1, eff. June 1, 1995.
§ 191.145. DISTRIBUTION OF TAX. The supreme court shall
forward tax received under this subchapter to the state for
deposit:
(1) twenty-five percent of the taxes shall be
deposited to the credit of the foundation school fund; and
(2) seventy-five percent of the taxes shall be
deposited to the credit of the general revenue fund.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, § 1, eff.
June 1, 1995.
