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
  
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*  No fiscal implication to the State is anticipated.                    *
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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