HB 1475

83(R) - 2013

Vote Recommendation

  • Neutral
  • Positive
  • Neutral
  • Positive
  • Neutral


Harvey Hilderbran

Bill Caption

Relating to the exclusion of certain flow-through payments related to petroleum and mineral interests in determining total revenue for purposes of the franchise tax.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB1475, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2015. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($1,827,000) for the 2014-15 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

Bill Analysis

Summary: HB 1475 would allow a business performing landman services to exclude from their revenues, for purposes of calculating their franchise tax liability, subcontracting payments made to non-employees to perform landman services on the business’ behalf. Landman services include determining ownership of certain resources, negotiating the acquisition or divestiture of mineral rights, and negotiating contracts related to mineral exploration, development and production.

Analysis: HB 1475 would limit government by reducing the amount of revenue it can take from businesses performing landman services, and it would promote the property rights of these businesses by allowing them to retain more of their resources. We support HB 1475.