CHAPTER 191. MISCELLANEOUS OCCUPATION TAXES
TAX CODE
TITLE 2. STATE TAXATION
SUBTITLE H. BUSINESS PERMIT TAXES
CHAPTER 191. MISCELLANEOUS OCCUPATION TAXES
SUBCHAPTER E. OIL WELL SERVICE
Sec. 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, Sec. 1, eff. Jan. 1,
1982.
Sec. 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, Sec. 1, eff. Jan. 1,
1982.
Sec. 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, Sec. 1, eff. Jan. 1,
1982.
Sec. 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, Sec. 1, eff. Jan. 1,
1982.
Sec. 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, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1999, 76th Leg., ch. 1467, Sec. 2.65, eff.
Oct. 1, 1999.
Sec. 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, Sec. 1, eff. Jan. 1,
1982.
Sec. 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, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 452, ch. 93, Sec. 6,
eff. Sept. 1, 1983.
Sec. 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, Sec. 1, eff. Jan. 1,
1982.
Sec. 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, Sec. 1, eff. Jan. 1,
1982.
SUBCHAPTER F. TAX RECEIPT
Sec. 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, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 19.119,
eff. Sept. 1, 1997.
Sec. 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, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 4769, ch. 840, Sec. 2,
eff. Aug. 29, 1983.
SUBCHAPTER G. NATURE AND ALLOCATION OF TAX
Sec. 191.121. NATURE OF TAX. A tax imposed by this chapter is
an occupation tax.
Acts 1981, 67th Leg., p. 1725, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 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, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., p. 2778, ch. 752, Sec.
9(h), eff. Jan. 1, 1982; Acts 1984, 68th Leg., 2nd C.S., ch. 28,
art. II, part B, Sec. 6, eff. Sept. 1, 1984.
SUBCHAPTER H. ATTORNEYS
Sec. 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, Sec. 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, Sec. 1,
eff. June 1, 1995.
Sec. 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, Sec. 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, Sec. 1,
eff. June 1, 1995.
Sec. 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, Sec. 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, Sec. 1,
eff. June 1, 1995.
Sec. 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, Sec. 1, eff. June 1, 1995.
Sec. 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, Sec. 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, Sec. 1,
eff. June 1, 1995.
Sec. 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, Sec. 1, eff. June 1, 1995.
Sec. 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, Sec. 1, eff. June 1, 1995.
Sec. 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, Sec. 1, eff. June 1, 1995.
Sec. 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, Sec. 10.12, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 66, Sec. 1,
eff. June 1, 1995.