Texas Comptroller Issues Information on Natural Gas Severance Taxes Concerning Marketing Costs for Excise Taxpayers

The Texas Comptroller of Public Accounts May 1 issued information on natural gas severance taxes. If a marketing facility is being used for gas lift, pressure maintenance, or handling gas for outside parties, those volumes must also be included to calculate a “per mcf” value for the marketing cost deduction. The information includes: 1) marketing costs don’t include costs associated with producing natural gas or with the separation of natural gas from oil, condensate, and water; 2) the cost must be necessary and essential to marketing the gas; 3) the cost should be directly related to the physical handling of ...