Constitutional Amendment two on the November 3rd ballot would change the way oil and gas wells are assessed for property taxes. The current method levies local taxes per well without consideration of the value of the oil or natural gas produced.
“This will not generally increase or decrease taxes on oil and gas,” said Public Affairs Research Council President Robert Travis Scott. “What it will do is be on a well by well basis as to whether that particular well is going to get charged more property tax or not,” said Scott.
Scott says the amendment is supported by assessors and the oil and gas industry.
“There’s a very complicated system now, it’s difficult to get everybody on the same page as to what the value of the well might be,” said Scott.
Scott says the proposed change will not necessarily increase or decrease taxes on the oil and gas industry.
“What it is designed to do, on a well by well basis for local property taxes, is to try to get a value on it that more accurately reflects not only the sort of infrastructure of the well, but also the oil and gas in the ground of the well,” said Scott.
Opponents of the measure say some parishes may receive more in property taxes while others receive less if the value is based on what the well produces versus a per well basis.
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