Texas Comptroller Manual of Accounts - Fiscal 2025
Revenue Object 3290 – Oil Production Tax

A tax based on gross production volume and barrel or market value, at the rate of 4.6% of the market value of oil produced in this state or 4.6 cents for each barrel of 42 standard gallons of oil produced in this state, whichever rate results in the greater amount of tax. For oil produced in this state from a new or expanded qualified enhanced recovery project, tax rate is 2.3% of market value of the oil.

Revenue exceeding the 1987 collection level is split between General Revenue, the Economic Stabilization Fund 0599, and the State Highway Fund 0006. General Revenue receives 25% and Fund 0599 and Fund 0006 each receive ½ of the 75%. Allocated through transfer 7969/3969.

25th day of each calendar month for production of preceding month.

Formerly deposited to the Omnibus Tax Clearance Fund (0120). H.B. 872, 67th Leg. R.S. abolished Fund 0120 and moved deposit to General Revenue.

Effective September 1, 1984, H.B. 72, 68th Leg., 2nd C.S. changed 25% allocation from Available School Fund 0002 to Foundation School 0193.

Per Tax Code § 202.352, 1/2 of 1% to General Revenue Fund 0001 for Comptroller’s Office administration and enforcement. This was formerly deposited to the Comptroller's Operating Fund Account 0062, which was abolished August 31, 1995 per § 403.094, Government Code.

S.B. 988, 68th Leg., R.S. added a provision requiring persons to remit an estimate on Aug. 15 of each odd numbered year of tax liability for month of July. This was repealed by S.B. 329, 76th Leg., R.S. effective September 1, 2001.

H.B. 1 and S.J.R. 1, 83rd Leg., 3rd C.S. split the 75% transfer to deposit at least one-half to Fund 0599 and the remainder to the State Highway Fund 0006. This was approved by the voters in November 2014.