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