The Texas oil and natural gas industry set a new record when it paid more than an astounding $16 billion in state and local taxes and state royalties in fiscal year 2019. The Texas Oil & Gas Association (TXOGA) shared a new report detailing how the oil and natural gas tax revenue benefits Texans.
This oil and natural gas tax and royalty revenue infuses funding into Texas education, transportation, healthcare and infrastructure through the State Highway Fund, the Economic Stabilization Fund, the Permanent School Fund and the Permanent University Fund.
The Economic Stabilization Fund, more commonly known as the Rainy Day Fund, is entirely funded by taxes paid by oil and natural gas companies and interest from the Rainy Day Fund itself. This money has made significant lasting affects felt across Texas. TXOGA noted in the last legislative session alone, lawmakers appropriated more than $6 billion from the Rainy Day Fund including:
- More than $1.1 billion to the Texas Teacher Retirement System, with half being invested in the pension fund and the other half financing a “13th check” of up to $2,000 for retired Texas teachers.
- $807 million to the Texas Education Agency to help school districts affected by Hurricane Harvey.
- $840 million to the Texas Water Development Board to develop and update flood risk maps across Texas and to provide grant funding for flood-related projects.
- $445 million to the Health and Human Services Commission to improve state hospital facilities.
- $125 million for grants to counties to plan, maintain, and reconstruct roads affected by oil and gas development.
Additionally, Texas school districts received a remarkable $1.54 billion in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities. These funds help Texas provide a robust education improving children’s knowledge and skills to set them up for the brightest possible future.
Todd Staples, president of TXOGA eloquently summarized the results of the report saying;
“Oil and natural gas does more than fuel our cars, power our homes and businesses, form the building blocks of our everyday goods and secure our nation. Taxes paid by the oil and natural gas industry support teachers and schools, build roads, boost essential and emergency services, improve healthcare facilities and bolster our state’s infrastructure,” he added, “Since 2007, the oil and natural gas industry has paid more than $149 billion in state and local taxes and state royalties. That’s money that benefits every Texan – whether you live near the oil patch or not.”
Texas should continue to invest in oil and natural gas industry and appreciate the reciprocal investment put back into the Lone Star State.