Early voting has begun and by the end of November 3rd we will have made many choices, among them is whether to vote YES for Constitutional Amendment No. 2 (CA2). This amendment asks “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?”
This amendment affects only oil and gas wells, it does not affect the assessment of the land upon which the well is located. The operator of an oil and gas well pays property taxes on that well and the owner of land pays property taxes on their land. Passage of CA2 allows oil and gas wells to be assessed using any of the three valuation methods just as other property is assessed in Louisiana which is only fair and equitable. CA2 is not a tax and it does not add anyone onto the tax rolls, it does not affect any other type of property.
Hopefully, an oil and gas well is an income-producing property. In Louisiana, it is the only kind of income-producing property that can’t use the income approach for tax valuation. That has led to assessments that have been wildly out of proportion with the well’s actual value. The Council for a Better Louisiana, good government groups, The Louisiana Tax Assessors Association AND the Louisiana Oil and Gas Association urge you to VOTE YES on CONSTITUTIONAL AMENDMENT NUMBER 2.
State Senator Robert Mills, District 36