- The Texas severance tax is a flat 7.5% of the market value of natural gas.
- Opponents argue that it encourages oil companies to continue drilling.
Taxes on the sale of flared gas used to mine Bitcoins would be eliminated under new legislation proposed by the Texas cryptocurrency sector to lower costs and entice more miners to the Lone Star State. Texas Blockchain Council, the state’s lobbying arm for the crypto business, has written draft legislation that it expects will be filed in the next session.
A year ago, Wyoming enacted into law a bill that reduces state taxes on some uses of extra gas that would otherwise be trapped and burnt off at wellheads. To recruit more Bitcoin miners to Texas, the cryptocurrency sector is again trying to influence state legislation and make the state more appealing to miners.
Backing From Governor
Legislators in Texas have taken some of the most aggressive efforts in America to attract Bitcoin and other cryptocurrencies, with backing from Governor Greg Abbott. In May, the governor signed a bill that makes it simpler for companies to utilize cryptocurrency as collateral for loans and store it as an asset easier for them.
The Texas severance tax, which is a flat 7.5% of the market value of natural gas, is the state’s primary tax on the oil and gas industry. Investors have flocked to use gas that would otherwise be burnt or released into the environment in oil-producing regions to power Bitcoin mining farms.
The idea’s proponents argue that by repurposing energy that would otherwise be squandered, they reduce greenhouse gas emissions. However, opponents argue that it encourages oil companies to continue drilling rather than convert to other fuels.
