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.