CA NO. 2 – Amends Determination of Fair Market Value of Oil or Gas Well
This amendment allows local taxing authorities to include the presence or production of oil or gas for ad valorem taxation purposes. The taxing authorities will be allowed to tax the well owner on the oil or gas in reserve or produced. Currently, there is only a state severance tax assessed on the production of these natural resources.
Allows local taxing authorities to increase well owner’s taxes when there is a presence of oil or gas.
Maintains current taxation levels.