Replies to This Discussion

Permalink Reply by Etola on November 11, 2010 at 18:08

I don't know how they assess it, but the county does put a value on your interest in the well and they will mail you a tax bill the same time you normally get your land taxes and they are due the same time also. Of course, you will not get your first tax bill until a year has passed so they may determine your value based on the well's production, I would guess.

Permalink Reply by Fish on November 13, 2010 at 1:45

Thanks.

Permalink Reply by adubu on November 14, 2010 at 3:54

Fish-- you will receive property tax statement only when there is production on your minerals. If no production the minerals have "no value" for taxes. The county appraisal district will place a value on each well in the unit and your tax bill will be simple multiple of total value times your decimal interest= your value net in well or wells times the tax % of each taxing authority---i.e. school, county,city,etc. The apprasial value will be re-appraised each year based on production value for year

Permalink Reply by Fish on November 14, 2010 at 9:14

adubu -- Thanks very much for the explanation. That makes sense. While paying taxes is not fun, in this case, at least it will be a good problem to have.