SCS/SB 554 - This act specifies that real property used as a mine shall be assessed using either the comparable sales method, capitalization of royalties, or cost approach. Mineral rights shall be assessed based on actual royalties or imputed royalties based on the value of minerals on the property.
Improvements on mine property that have little value other than use in mining will be included in the assessed value of the mineral rights. Improvements on mine property that have value outside of use in mining will assessed separately from the mineral rights using traditional appraisal methods.
Mine property shall not be assessed based on capitalization of business income. The real property value for tax purposes of mine property shall not be based on revenue from extracted minerals.
Mine property no longer containing minerals or any improvements will be assessed as agricultural property. Such property will have the cost of remediation deducted from the assessed value.
This act is similar to a provision contained in SS/SB 339 (2015).