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SB 1211

Relating to an exemption from sales and use taxes for certain tangible personal property used in hydraulic fracturing.

89th Legislature (2025) Introduced by Charles Perry

SB 1211 exempts hydraulic fracturing equipment from Texas sales and use taxes, reducing operational costs for oil and gas extraction companies while decreasing state tax revenue.

Left pending in committee
#oil&gas(i0545) #propertyinterests--personalproperty(i0600) #taxation--sales(i0800) #water--development(i0875) #water--general(i0885)
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Bill Summary · SB 1211

Legislative bill overview

SB 1211 proposes to exempt certain tangible personal property used in hydraulic fracturing operations from Texas sales and use taxes. The bill would reduce the tax burden on equipment and materials specifically utilized in oil and gas extraction through hydraulic fracturing (fracking) processes.

Why is this important

Hydraulic fracturing is a major revenue generator for Texas, and equipment costs significantly impact the profitability of extraction operations. Tax exemptions can influence investment decisions, operational costs, and the competitiveness of Texas energy producers relative to other states. This directly affects state tax revenue, industry employment, and energy sector economic activity.

Potential points of contention

  • State revenue impact: Exempting equipment from sales taxes reduces state and local government funding, which could shift tax burden to other sectors or consumers
  • Environmental and regulatory fairness: Critics may argue the oil and gas industry receives preferential tax treatment while bearing fewer costs associated with environmental impacts and regulatory compliance
  • Scope ambiguity: The bill's reference to "certain tangible personal property" leaves questions about which specific equipment qualifies, potentially creating implementation challenges and unequal competitive advantages between operators

Compiled from official sources — confirm details with the bill’s official record.

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