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