LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 30, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE: Committee Substitute
         Committee on Ways & Means                              for House
         House of Representatives               Bill No. 1201
         Austin, Texas








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1201 (relating to allowing the prepayment of the franchise tax in
quarterly installments) this office has determined the following:

The bill authorizes a quarterly pre-payment plan for certain
franchise taxpayers.  Those taxpayers electing to utilize the
quarterly payment plan would estimate their franchise tax
liability due on May 15 and would pre-pay one-fourth of the
estimated liability on the preceding August 15, November 15, and
February 15.

The bill takes effect January 1, 1996 and would apply to payments
for a regular annual period that begins on or after January 1,
1997.


No fiscal implication to the State or units of local government
is anticipated.




Source:   Comptroller of Public Accounts
          LBB Staff: JK, CT, DF