Bill Analysis
Senate Bill 1985 amends Chapter 23 of the Tax code on appraisal methods and procedures by substituting "the price of imported-sulfur light crude oil in nominal dollars" by "the spot price of West Texas Intermediate crude oil in nominal dollars per barrel," and specifies "per million British thermal units" for the spot price of natural gas at the Henry Hub in nominal dollars, for the purpose of calculating the price adjustment factor for appraisals of real property interest in oil or gas in place.
It would also require that the reference used be the most recently published edition of the United States Energy Information Administration's (EIA) of the Annual Energy Outlook, instead of the Early Release Overview. If, as of March 1 of the current year, the most recently published edition of the Annual Energy Outlook was published before December 1 of the preceding year, the EIA's Short-Term Energy Outlook report published in January of the current calendar year should be used instead.
Vote Recommendation Notes
Senate Bill 1985 only makes adjustments to the name of references used for the purpose of calculating the price adjustment factor. It also substitutes the current source used for these references for the most recent one available.
Senate Bill 1985 does not impact our Liberty principles. We hence remain neutral.