By: Craddick H.B. No. 925 73R4531 JD-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the appraised value of oil and gas property for ad 1-3 valorem tax purposes. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 23, Tax Code, is amended by 1-6 adding Section 23.175 to read as follows: 1-7 Sec. 23.175. OIL OR GAS INTEREST. If a real property 1-8 interest in oil or gas in place is appraised by a method that takes 1-9 into account the future income from the sale of oil or gas to be 1-10 produced from the interest, the method must use the average price 1-11 of the oil or gas from the interest for the preceding year as the 1-12 future price at which the oil or gas to be produced from the 1-13 interest is projected to be sold. The average price for the 1-14 preceding year is calculated by dividing the sum of the prices for 1-15 which oil or gas from the interest was selling on each day of the 1-16 preceding calendar year, excluding February 29, by 365. If there 1-17 was no production of oil or gas from the interest on any day during 1-18 the preceding calendar year, the average price for which similar 1-19 oil or gas from comparable interests was selling on that day is to 1-20 be used. 1-21 SECTION 2. This Act takes effect January 1, 1994, and 1-22 applies only to taxes imposed on or after that date. 1-23 SECTION 3. The importance of this legislation and the 1-24 crowded condition of the calendars in both houses create an 2-1 emergency and an imperative public necessity that the 2-2 constitutional rule requiring bills to be read on three several 2-3 days in each house be suspended, and this rule is hereby suspended.