LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 10, 1997
TO: Honorable Tom Craddick, Chair IN RE: Senate Bill No. 988, Committee Report 2nd House,
as amended
Committee on Ways & Means By: Brown
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB988 ( relating
to reports required from certain producers and purchasers of
oil.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB988-Committee Report 2nd House, as amended
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 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 tax rate and revenue flow would not change.
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
are 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