The Comptroller of Public Accounts adopts the repeal of existing §9.4031, concerning a manual for discounting oil and gas income, without changes to the proposed text as published in the September 3, 2021, issue of the Texas Register (46 TexReg 5540). The rule will not be republished.

This section related to the concept of discounting, the discounted cash flow (DCF) equation, DCF appraisal, and three acceptable techniques for estimating a "discount rate" in the DCF method. The comptroller repeals existing §9.4031 in order to adopt a new §9.4031 with revisions to remove concepts and explanations included in the referenced manual. The repeal of §9.4031 will be effective as of the date the new §9.4031 takes effect.

The comptroller did not receive any comments regarding adoption of the repeal.

The repeal is adopted under Tax Code, §5.05 (Appraisal Manuals and Other Materials) and §23.175 (Oil or Gas Interest), which provide the comptroller with the authority to prepare and issue publications relating to the appraisal of property and to promulgate rules specifying methods to apply and the procedures to use in appraising oil or gas interests for ad valorem tax purposes.

This repeal implements Tax Code, §23.175 (Oil or Gas Interest).