Impact of declining oil and gas production on local government tax revenues in Texas

Journal Article · Fri Mar 01 04:00:00 EST 1985 · Oil Gas Tax Q.; (United States)

OSTI ID:5716573

Ballinger, P

The production of oil and gas has been declining in Texas since 1973. Moreover, production has consistently outstripped additions to reserves, causing the reserve base to exhibit yearly decreases as well. Many counties and independent school districts in Texas are highly dependent on the extraction of energy resources as a source of operating (ad valorem tax) revenues. Mineral value in some cases exceeds 90% of total taxable wealth. The present trend toward falling state production indicates that at some point in time each jurisdiction heavily reliant on the taxes from mineral activity will face serious revenue shortages. As most of these jurisdictions are rural, with little other real property, alternative means of local funding are limited. State aid appears mandatory to offset fiscal shortfalls in these jurisdictions. However, the state is itself experiencing revenue problems caused by declining energy production. Whether the state can appropriate the future sums necessary for such aid to local government, when it currently has difficulty funding existing programs, remains unknown. It is reasonable to anticipate substantial increases in state taxes, with implementation of new levies. 9 references, 3 figures, 8 tables.

• Research Organization: Texas State Property Tax Board, Austin
• OSTI ID: 5716573
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 33:3; ISSN OGTQD
• Country of Publication: United States
• Language: English

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EDUCATION
FEDERAL REGION VI
INCOME
INDUSTRY
LOCAL GOVERNMENT
NATURAL GAS INDUSTRY
NORTH AMERICA
PETROLEUM INDUSTRY
PRODUCTION
STATE GOVERNMENT
TAXES
TEXAS
USA