LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 5, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4063 by Gonzalez Toureilles (Relating to the periods for applying for and receiving designation of a well as a two-year inactive well for purposes of the oil and gas severance tax exemption.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4063, As Introduced: a negative impact of ($2,698,000) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 5, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4063 by Gonzalez Toureilles (Relating to the periods for applying for and receiving designation of a well as a two-year inactive well for purposes of the oil and gas severance tax exemption.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB4063 by Gonzalez Toureilles (Relating to the periods for applying for and receiving designation of a well as a two-year inactive well for purposes of the oil and gas severance tax exemption.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB4063 by Gonzalez Toureilles (Relating to the periods for applying for and receiving designation of a well as a two-year inactive well for purposes of the oil and gas severance tax exemption.), As Introduced
HB4063 by Gonzalez Toureilles (Relating to the periods for applying for and receiving designation of a well as a two-year inactive well for purposes of the oil and gas severance tax exemption.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4063, As Introduced: a negative impact of ($2,698,000) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB4063, As Introduced: a negative impact of ($2,698,000) through the biennium ending August 31, 2011.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($203,000) 2011 ($2,495,000) 2012 ($6,082,000) 2013 ($10,578,000) 2014 ($15,957,000)
2010 ($203,000)
2011 ($2,495,000)
2012 ($6,082,000)
2013 ($10,578,000)
2014 ($15,957,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromFoundation School Fund193 Probable Revenue (Loss) fromEconomic Stabilization Fund599 2010 ($203,000) ($608,000) 2011 ($2,495,000) ($7,486,000) 2012 ($6,082,000) ($18,245,000) 2013 ($10,578,000) ($31,734,000) 2014 ($15,957,000) ($47,871,000)
Fiscal Year Probable Revenue (Loss) fromFoundation School Fund193 Probable Revenue (Loss) fromEconomic Stabilization Fund599 2010 ($203,000) ($608,000) 2011 ($2,495,000) ($7,486,000) 2012 ($6,082,000) ($18,245,000) 2013 ($10,578,000) ($31,734,000) 2014 ($15,957,000) ($47,871,000)
2010 ($203,000) ($608,000)
2011 ($2,495,000) ($7,486,000)
2012 ($6,082,000) ($18,245,000)
2013 ($10,578,000) ($31,734,000)
2014 ($15,957,000) ($47,871,000)
Fiscal Analysis
This bill would amend Section 202.056 of the Tax Code, relating to the two-year inactive well exemption from oil and natural gas severance taxes. The bill would extend the two-year inactive well exemption program for an additional ten years by moving the application and certification deadlines to August 31, 2019 and February 28, 2020, respectively. This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect on September 1, 2009, after the last day of the legislative session.
This bill would amend Section 202.056 of the Tax Code, relating to the two-year inactive well exemption from oil and natural gas severance taxes.
The bill would extend the two-year inactive well exemption program for an additional ten years by moving the application and certification deadlines to August 31, 2019 and February 28, 2020, respectively.
This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect on September 1, 2009, after the last day of the legislative session.
Methodology
The fiscal analysis was based on information extracted from the Comptroller's oil and natural gas tax data and the 2010-11 Biennial Revenue Estimate. The fiscal impact reflects the growing loss of tax revenues to the state as qualified inactive oil and natural gas wells continue to populate for the next ten years beginning March 2010.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 455 Railroad Commission
304 Comptroller of Public Accounts, 455 Railroad Commission
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK