Understanding the Complexities of Property Tax in the Oil and Gas Industry

The property tax assessment of oil and gas assets presents unique challenges because of varying valuation approaches by state and the diverse production profiles and operational costs associated with different fields and properties. Understanding how property taxes are calculated—considering factors such as land, buildings, and equipment related to oil and gas production—is crucial for ensuring accurate and fair charges.

Oil and gas companies must stay vigilant about changes in tax laws and regulations to accurately report their asset assessments and fulfill tax obligations. By comprehending the impact of property taxes on financial performance, companies can make better-informed investment decisions. Key factors affecting property taxes include asset location, local tax rates, assessed property values, and production methods.

Ryan specializes in navigating the complexities of valuing special purpose, high-value real and personal property assets. By leveraging a national network of subject-matter experts and experienced professionals, Ryan helps clients minimize annual tax burdens and streamline their property tax functions. Our team collaborates closely with your engineering, operations, and financial professionals to translate each property’s unique characteristics into the lowest supportable value possible, whether dealing with reserves, equipment, or inventory.