LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
March 23, 1995
TO: Honorable Tom Craddick, Chair IN RE: Committee Substitute
Committee on Ways & Means for
House of Representatives House Bill
Austin, Texas No. 676
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
676 (relating to a tax exemption for hydrocarbon production from
certain inactive oil and gas leases returned to production) this
office has determined the following:
The bill would continue for two more years the mineral severance
tax exemption given to three-year inactive wells. Production of
oil and gas from wells certified would be exempt from taxation
for a period of 10 years. The bill would authorize a period from
Sept. 1, 1995 through Aug. 31, 1997 for certification application
to the Railroad Commission. Lastly, the bill makes tax exempt
the condensate produced from certified wells.
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 Administrative
Year Loss from General Cost to the
Revenue Fund 001 Comptroller's
Office from
General Revenue
Fund 001
1996 $455,000 $75,200
1997 457,000 75,200
1998 458,000
1999 457,000
2000 457,000
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
The fiscal implication to units of local government cannot be
determined.
Source: Comptroller of Public Accounts
LBB Staff: JK, CT, DF