LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 23, 2001 TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance FROM: John Keel, Director, Legislative Budget Board IN RE: SB344 by Bivins (Relating to the rates of the gas and oil severance taxes.), Committee Report 1st House, Substituted ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The Comptroller's Office estimates that the New York Mercantile Exchange (NYMEX) prices for oil and for natural gas are not expected to meet the $20 per barrel triggering price for oil or the $3.00 per million British thermal units (MMBtu) triggering price for natural gas during the next biennium, or at any time in the three fiscal years thereafter. Consequently, no loss in revenue to the state would be anticipated from the bill. While it is not anticipated that either price condition would be met, the bill provides for a credit equal to the difference between the tax paid at the full rate and the tax due at the reduced rate for the period September 1, 2001 through September 1, 2004. However, the credit could not be claimed until September 1, 2004 or a later date. The provisions of the bill expire September 1, 2006. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, WP, CT