AR HB1755

Defines "oil well" as a producing unit well that produces only liquid hydrocarbons, liquid hydrocarbons associated with gas production, or gas associated with liquid hydrocarbon production.

Defines "production equipment" as all piping and equipment of an oil well from the bottom of the casing to and including the sales valve at the tank battery.

Requires county assessors to assess all production equipment as real property at a value of $1.00 per foot, except portions of casing rendered inoperable by cement or mechanical plug.

Establishes that increased annual production from an existing oil well qualifies as newly discovered property only if attributable to new production from a geologic zone or horizon not previously produced from that well.

Requires a uniform expense allowance per barrel of oil produced (without regard to average daily production) based on actual expenses, and mandates income-based valuations use the actual average price per barrel in Arkansas during the preceding calendar year.

Effective for assessment years beginning on or after January 1, 2022.