HB1937

House Bill 1937 amends the valuation methods for mineral rights and oil and gas well production equipment for the purpose of property tax assessments in Arkansas. The bill provides a standardized definition for 'well' and 'production equipment' and establishes specific guidelines for county assessors to follow when evaluating these assets. Notably, it mandates that production equipment be assessed as real property at a rate of $1.00 per foot, while exempting plugged or inoperable casing from taxation. It also sets forth requirements for assessing annual increases in production as newly discovered property and mandates a uniform expense allowance calculation based on actual costs. Finally, the bill directs the Assessment Coordination Division to ensure all guidance and valuation tables comply with these new statutory requirements, effective for assessment years starting on or after January 1, 2025.