This bill amends the method of valuation for mineral rights under the Arkansas Constitution, specifically Article 16, Section 5, and clarifies the valuation process for oil and gas well production equipment. The legislative intent is to provide a remedial and clarifying framework for the assessment of mineral rights and production equipment, ensuring consistency and uniformity in valuation practices. Key changes include the definition of "well" to encompass various types of hydrocarbons, the assessment of production equipment as real property, and the establishment of specific valuation methods for both mineral interests and production equipment.

Additionally, the bill specifies that the county assessor must assess mineral interests separately from the fee simple interest in the land when different parties hold these interests. It also outlines the conditions under which newly discovered property can be assessed and mandates that all valuation formulas and guidance provided to county assessors comply with the new requirements. The effective date for these changes is set for assessment years beginning on or after January 1, 2025.

Statutes affected:
Old version HB1937 V2 - 4-3-2025 11:08 AM: 26-26-1110(a)
Old version HB1937 Original - 3-31-2025 04:31 PM: 26-26-1110(a)
HB 1937: 26-26-1110(a)
Act 821: 26-26-1110(a)