LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 20, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 3491, Committee Report 1st House, Substituted
          Committee on Ways & Means                              By: Holzheauser
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3491 ( Relating 
to tax exemptions on oil and gas production.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB3491-Committee Report 1st House, Substituted
         
No significant fiscal implication to the State is anticipated.
         

         
 
          
LOCAL
State tax measures that induce petroleum production from 
properties previously not operating at full capacity  increase 
the value of such properties to local taxing jurisdictions. 
 The degree of increase would depend on the future price of 
crude oil and natural gas and the number of wells that would 
be entered into such production incentive programs.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         455   Railroad Commission
                                         
                      LBB Staff:   JK ,RR ,CT