(KTVE/KARD) — The second proposed constitutional amendment deals with including the value of oil and natural gas in property tax assessments.
Here is the official proposal:
Proposed Amendment No. 2
Act 368 (HB 360, 2020 Regular Session by Representative Huval) – Proposed constitutional
amendment retains present constitution but specifies that the presence or production of oil or gas may be included in the methodology when determining the fair market value of an oil or gas well for the purpose of ad valorem taxes. (Amends Const. Art. VII, §4(B))
This is what you will see on the ballot:
Do you support an amendment to permit the presence or production of oil or gas to be included in the methodology used to determine the fair market value of an oil or gas well for the purpose of property assessment? (Amends Article VII, Section 4(B))
The ballot summary is as follows:
“Present Constitution provides that taxes may be levied on natural resources severed from the soil or water to be paid proportionally by the owners at the time of severance.
Present Constitution provides that natural resources may be classified for the purpose of taxation and may be predicated upon either the quantity or value of the products at the time and place of severance. Further provides that no further or additional tax or license shall be levied or imposed on oil, gas or sulphur leases or rights and no additional value shall be added to the assessment of land due to the presence of oil, gas or sulphur or their production therefrom.
Proposed Constitutional Amendment retains the present constitution and provides that the presence of oil or gas or the production thereof may be included in the methodology to determine the fair market value of an oil or gas well for ad valorem taxes.”
This amendment would allow the presence or production of oil or gas to be taken into account when assessing the fair market value of an oil or gas well for ad valorem property tax purposes.
Here’s what each vote on this amendment will mean:
A “yes” vote supports this amendment to allow the presence or production of oil or gas to be taken into account when determining the fair market value of an oil or gas well for ad valorem taxes.
A “no” vote opposes taking the presence or production of oil or gas into account when determining the fair market value of an oil or gas well for ad valorem taxes.
So, to break this down, lawmakers want to put words in the constitution that would give tax assessors the ability to include the value of the oil or natural gas in a well on a piece of property in the property tax assessment.
Other items on the ballot:
- Amendment 1: No Right to Abortion in Constitution Amendment
- Amendment 2: Include Oil and Gas Value in Tax Assessment of Wells Amendment
- Amendment 3: Use of Budget Stabilization Fund for Declared Disasters Amendment
- Amendment 4: Expenditures Limit Growth Formula Amendment
- Amendment 5: Payments in Lieu of Property Taxes Option Amendment
- Amendment 6: Homestead Exemption Special Assessment Income Limit Amendment
- Amendment 7: Unclaimed Property Permanent Trust Fund Amendment
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