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