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 SB1440 ( relating to tax exemptions on, and the use of certain revenues from taxes on, oil and gas production) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1440-Conference Committee Report No significant fiscal implication to the State is anticipated. 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 petroleum products and the number of wells that would be entered into such production incentive programs. Source: Agencies: LBB Staff: JK ,RR ,PE ,MG