LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 6, 1995 TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 398 Committee on Ways & Means By: Counts House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 398 (Relating to tax exemption for certain high-cost gas to promote its continued production.) this office has determined the following: This bill would extend the present gas production tax exemption for high-cost wells to those spudded or completed after September 1, 1996 but before August 31, 2002. The exemption would apply to production within the period beginning September 1, 1996 and ending before August 31, 2007. The time for an exemption application would be extended from December 31, 1998 to December 31, 2004. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Revenue Year Loss from General Revenue Fund 001 1996 $0 1997 20,697,612 1998 37,821,117 1999 55,040,793 2000 73,062,664 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Comptroller of Public Accounts, Railroad Commission LBB Staff: JK, CT, DF