La. Admin. Code tit. 61 § V-1101

Current through Register Vol. 50, No. 6, June 20, 2024

Section V-1101 - Guidelines for Ascertaining the Fair Market Value of Drilling Rigs and Related Equipment

A. General. The standard for valuation of drilling rigs and related equipment is fair market value. Assessors are to valuate and assess each drilling rig individually with the appropriate allowance provided for depreciation and obsolence where necessary. The recommended procedures for discovery and valuation of drilling rigs follow.

B. Discovery. Each assessor is to assess those drilling rigs located in his parish as of January 1, each year. Discovery of drilling rigs operating in a parish is the responsibility of the parish tax assessor. Personnel of each parish assessor's office should use a visual survey or other method to establish the name and location of drilling rigs operating in a particular parish on the first of the year. The parish assessor should then contact the drilling contractor to determine if a drilling rig is currently located on the site. The drilling contractor should then be provided a notification of the assessor's intent to assess the drilling rig and a copy of LAT Form 13. The drilling contractor should also be provided a copy of LAT Form 5 on which to record the name and address of owners of leased equipment and inventories located on the drill site such as equipment buildings, cement, etc.

C. Valuation. The valuation standard for drilling rigs and related equipment is fair market value. Fair market value for drilling rigs and related equipment, when using the cost approach, is to be achieved through use of the information provided the assessor on LAT Form 13. The assessor shall take the depth of operating capability or engine rated horsepower and apply the appropriate assessment of the drilling rig as presented in Table 1103.A, 1103.B, 1103.C or 1103.D, as appropriate.

La. Admin. Code tit. 61, § V-1101

Promulgated by the Department of Revenue and Taxation, Tax Commission, LR 8:102 (February 1982), amended LR 15:1097 (December 1989), LR 16:1063 (December 1990), LR 22:117 (February 1996), amended by the Department of Revenue, Tax Commission, LR 24:487 (March 1998), amended by the Division of Administration, Tax Commission, LR 38:808 (March 2012).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1837 and R.S. 47:2326.