(Constitutional Amendment) Provides for the methodology of valuation of oil and gas wells for the purpose of ad valorem assessment (EN SEE FISC NOTE LF RV See Note)
Impact
The amendment could significantly impact how oil and gas properties are taxed in Louisiana, potentially leading to increases in ad valorem taxes for owners of such properties. Supporters argue that it brings fairness and modernization to tax assessments by acknowledging the presence of valuable resources when determining property values. This could result in higher revenue for local governments dependent on property taxes, potentially affecting state budgets and local services funded by these taxes.
Summary
House Bill 360 proposes an amendment to Article VII, Section 4(B) of the Louisiana Constitution, allowing for the inclusion of the presence and production of oil and gas in determining the fair market value of oil and gas wells for ad valorem tax purposes. The amendment aims to provide a more accurate method for valuing these resources, thereby affecting how property taxes are assessed in connection with oil and gas production. This change is seen as a response to the current valuation methods that do not consider these critical factors.
Sentiment
General sentiment around HB 360 appears to align with support from those in favor of modernizing the tax code to reflect current resource valuations. However, there may also be concerns from property owners who fear increased taxes as a result of the changes. Overall, supporters view the bill as a positive step towards more equitable tax practices, while opponents may worry about the financial implications for property owners in the state’s oil and gas sector.
Contention
Some notable points of contention include potential challenges from groups advocating for property rights and those concerned about the implications of increased taxation on the resource sector. Critics may argue that the new taxation method could burden oil and gas operators, particularly smaller companies, impacting their operations and competitiveness. The debate surrounding this amendment will likely focus on finding a balance between tax revenue generation for public services and the financial obligations placed on resource producers.
(Constitutional Amendment) Provides with respect to the classification and valuation of property for purposes of ad valorem taxation (OR SEE FISC NOTE LF RV)
(Constitutional Amendment) Provides for the valuation of unoccupied land for purposes of determining its assessed valuation for ad valorem taxation (OR DECREASE LF RV See Note)
(Constitutional Amendment) Limits the frequency of the reappraisal and valuation of certain property for purposes of ad valorem property taxes (OR SEE FISC NOTE LF RV)
(Constitutional Amendment) Increases the income threshold for purposes of qualifying for the special assessment level (EN SEE FISC NOTE LF RV See Note)
Provides for the homestead exemption, special assessment level, and other property tax exemptions for purposes of determining ad valorem taxation of certain property (Items #1 and 10) (EN SEE FISC NOTE LF RV See Note)
(Constitutional Amendment) Limits the amount of the increase in the assessed value of certain immovable property in Orleans Parish following reassessment of property for purposes of ad valorem taxes (OR SEE FISC NOTE LF RV)
Provides for the homestead exemption, special assessment level, and other property tax exemptions for purposes of determining ad valorem taxation of certain property (Items #1 and 10) (OR SEE FISC NOTE LF RV See Note)