LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 5, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 1440, Committee Report 1st House, Substituted
          Committee on Finance                              By: Wentworth
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1440 ( relating 
to tax exemptions on oil and gas production) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1440-Committee Report 1st House, Substituted
         
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:   455   Railroad Commission
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,CT