LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 31, 1997 TO: Honorable Bob Bullock Honorable James E. "Pete" Laney Lieutenant Governor Speaker of the House Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB862 ( relating to the administration, collection, and enforcement by the comptroller of various taxes and fees) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB862-Conference Committee Report Implementing the provisions of the bill would result in a net positive impact of $3,710,000 to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would clarify several tax provisions as administered by the Comptroller of Public Accounts. The bill would also amend the Tax Code to require crude oil severance taxes to be reported at the lease level rather than the county level, thereby standardizing the reporting basis for oil and gas. Methodolgy The bill would change the basis for reporting the oil severance tax. The Comptroller of Public Accounts estimates that improved audit procedures and tax reporting would generate additional state revenues equivalent to approximately one percent of total oil severance tax revenues. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Revenue Gain/(Loss) from General Revenue Fund 0001 1998 $0 1998 3,710,000 2000 3,650,000 2001 3,650,000 2002 3,650,000 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 3,710,000 2000 3,650,000 2001 3,650,000 2002 3,650,000 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: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,RR ,RN