Oil & Gas

(K.S.A. 79-329)  FOR THE PURPOSE OF VALUATION AND TAXATION, ALL OIL AND GAS LEASES AND ALL OIL AND GAS WELLS, PRODUCING OR CAPABLE OF PRODUCING OIL OR GAS IN PAYING QUANTITIES, TOGETHER WITH ALL CASING, TUBING OR OTHER MATERIAL THEREIN, AND ALL OTHER EQUIPMENT AND MATERIAL, USED IN OPERATING THE OIL OR GAS WELLS ARE HEREBY DECLARED TO BE PERSONAL PROPERTY AND SHALL BE ASSESSED AND TAXED AS SUCH.

(K.S.A. 79-332a)   PROVIDES FOR ANY PERSON, CORPORATION OR ASSOCIATION OWNING OIL AND GAS LEASES OR ENGAGED IN OPERATING FOR OIL OR GAS WHO FAILS TO MAKE AND FILE THE OIL/GAS TAX STATEMENT RENDITION ON OR BEFORE APRIL 1 IN THE OFFICE OF THE COUNTY APPRAISER IN AND FOR THE COUNTY WHICH HAS JURISDICTION OF THE LEASE, SHALL BE SUBJECT TO PENALTIES FOR LATE FILING AND/OR FOR FAILURE TO FILE.  THE STATUTE ALSO NOTES THAT THE LEASE OPERATOR MAY REQUEST AN EXTENSION OF THE FILING TIME, BUT IT MUST BE IN WRITING, AND IT MUST BE FILED PRIOR TO THE APRIL 1 DEADLINE.  PENALTIES ARE ASSESSED TO THE OPERATOR BASED ON THE TOTAL VALUE OF THE ROYALTY INTEREST PLUS THE WORKING INTEREST.  THE KANSAS STATE BOARD OF TAX APPEALS IS THE SOLE AUTHORITY FOR THE RELIEF OF THE ASSESSED PENALTY.

(K.S.A. 79-201t)  PROPERTY EXEMPT FROM TAXATION: OIL LEASES.  THE FOLLOWING DESCRIBED PROPERTY, TO THE EXTENT SPECIFIED, SHALL BE AND HERE IS HEREBY EXEMPT FROM ALL PROPERTY OR ADVALOREM TAXES LEVIED UNDER THE LAWS OF THE STATE OF KANSAS.

ALL OIL LEASES, OTHER THAN ROYALTY INTERESTS THEREIN, THE AVERAGE DAILY PRODUCTION FROM WHICH IS THREE BARRELS OR LESS PER PRODUCING WELL, OR FIVE BARRELS OR LESS PER PRODUCING WELL WHICH HAS A COMPLETION DEPTH OF 2,000 FEET OR MORE.

THE EXEMPTION MUST BE APPROVED BY THE KANSAS STATE BOARD OF TAX APPEALS.

FOR MORE INFORMATION REGARDING THE EXEMPTION AND THE PROCESS, PLEASE CONTACT THE COUNTY APPRAISERS OFFICE AT 620-257-3611.

THE ADMINISTRATION OF THE AD VALOREM PROPERTY TAX IS THE JURISDICTION OF THE COUNTY APPRAISER’S OFFICE, IN AND FOR THE COUNTY, IN WHICH THE OIL OR GAS LEASE IS LOCATED.  THE KANSAS DEPARTMENT OF REVENUE, DIVISION OF PROPERTY VALUATION PRESCRIBES THE OIL AND GAS GUIDE AND RENDITION FORMS.  FOR COPIES, PLEASE CONTACT THE COUNTY APPRAISER’S OFFICE FOR WHICH THE PROPERTY IS LOCATED OR DOWNLOAD FROM http://www.ksrevenue.org/pvdoilgas.htm 

ANY QUESTION REGARDING THE OIL AND GAS VALUATION PROCESS, PLEASE CONTACT OUR OFFICE AT 620-257-3611.