Unlike other states, Louisiana Parish Assessors do not have the full range of options available to accurately calculate ad valorem taxes on wells. This has resulted in decades of legal and financial disputes between assessors and industry.
As an example, just recently the Louisiana Supreme Court ruled on a well property tax dispute where an independent oil and gas operator purchased two gas wells and a salt water disposal well for $100,000, but faced an assessment of over $3 million. This assessment resulted in the producer having to pay $110,000 in taxes, more than they paid for the property. They certainly paid their taxes under protest.
Fixing this hinges upon passing Constitutional Amendment 2. This amendment would enable assessors to use a fairer, more predictable, and accurate way to assess an oil or gas well. The Louisiana Assessors Association itself agrees and have endorsed passing Constitutional Amendment 2.
Failure to pass Amendment 2 would allow neighboring states to keep their competitive advantage over us for investment dollars that they currently enjoy.
It’s important to note that this amendment affects only the well operator, not the landowner, and does not create any new taxes or tax payers.
Please vote yes on constitutional amendment 2.
Justiss Oil Company