Governor's Message to the 56th legislature. Page: 18 of 41
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committee report (pages 12-13, and Appendix III); and $2, 500, 000 annually from the
Unclaimed Property or Conservator Act heretofore mentioned. (See Exhibit 5
From Four Additional Taxes
For the amount to be raised from additional taxes, I recommend two new
taxes and two increases, as follows:
1. A new "Severance Beneficiary" tax on natural gas at the rate of 3% of
value, which would raise $19, 700, 000 the first year and $21, 300, 000 the second
year, based on the Comptroller's estimates of gas production for the next biennium.
This tax would be paid by any "severance beneficiary" engaged in the occupation
of producing or obtaining the production of natural gas in Texas, with the term
defined so as to include any person or corporation for whom Texas gas is produced
under a dedicated gas reserve or any other contract of purchase made prior
to actual production. It would be paid by the producer only if there is no severance
beneficiary to pay for it. Together with other lawyers, I have studied every possible
means of our State receiving its fair tax revenue from the trillions of cubic feet of
irreplaceable natural gas now being produced, 53% of which is being marketed outside
the State. I have confidence in the constitutionality of the me asure which I now
propose, because it treats interstate and intrastate gas alike.
This, together with the present 7% production tax, will be less than one half
of Louisiana's present production tax of 2.3 per MCF, which averages more than
20% of value
I feel sure that Texas people who may end up paying part of this tax on the gas
consumed in this State will be glad to do so in order to see that those who are enjoying
53% of our production outside the State pay a just tax on this natural resource. The
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Price, Daniel. Governor's Message to the 56th legislature., book, January 21, 1959; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth5870/m1/18/: accessed July 23, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .