Texas State Report Calls For End To Fracking Tax Exemptions
By: Big 2 News Staff
Updated: January 16, 2013
AUSTIN -- A new state report says that Texas legislators should stop tax exemptions for fracking as a way of raising more money.
The Legislative Budget Board Report shows that in many cases, fracking has reduced some producers' tax liabilities to nothing.
The exemptions were started to encourage fracking, since it was originally a more expensive method of drilling.
However, as fracking has become more common, the issue is now being reconsidered.
Between 2004 and 2011, the Legislative Budget Board Report found that Texas lost roughly $1.2 billion dollars in revenue because of tax exemptions.
Producers have countered that removing the tax exemption could cause drilling to move from Texas to other states.
The Legislative Budget Board Report shows that in many cases, fracking has reduced some producers' tax liabilities to nothing.
The exemptions were started to encourage fracking, since it was originally a more expensive method of drilling.
However, as fracking has become more common, the issue is now being reconsidered.
Between 2004 and 2011, the Legislative Budget Board Report found that Texas lost roughly $1.2 billion dollars in revenue because of tax exemptions.
Producers have countered that removing the tax exemption could cause drilling to move from Texas to other states.
