Government, Taxation and Minerals

I wonder, wtih the current state of economy and defcit, when the tax and spend leaders of our country will increase taxation on our  privately held minerals... I read an article where Russia took their peoples minerals through taxation.   Would love to hear much smarter people , spin on this, and what long term looks like on this subject. JWP

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Permalink Reply by PamelaC on January 26, 2011 at 0:22

JWP,

 

Did you see my question on taxes? If not..... Do I report MailBox$$$$ received in Jan  for Nov production on my 2010 return or 2011?

Permalink Reply by Henry on January 26, 2011 at 0:46
Report whatever your 1099 says.
Permalink Reply by Linda Whatley on January 26, 2011 at 3:32
Yes, Henry is correct....you must report what your 1099 shows.  The IRS will receive this information from the operator, so what you report must match!!! 
Permalink Reply by JHH on January 26, 2011 at 1:57
Government can do whatever it wants to do... as long as we allow it.  But i don't think we want to get into that discussion in this forum.  jhh :)
Permalink Reply by Skip Peel - Mineral Consultant on January 26, 2011 at 2:17
Russia doesn't tax minerals, the state owns them as is the case in most European countries.  We should feel fortunate to pay taxes on our minerals as we are legally entitled to participate in the profits generated by their production.
Permalink Reply by Max on January 26, 2011 at 3:11

Skip,

In your opinion, how far down does a landowner own? 

 

If you go the other way, up, there is a limit.  I can't stop airplanes from flying over my property and radio waves are everywhere.  Common sense dictates freedom of the airways, but someone with too much power may use 'Common Sense' to claim what's under your feet after a certain depth. 

 

I believe that there are folks out there that think all minerals should be owned by the government.  I just hope that they are far away from here.......

Permalink Reply by Skip Peel - Mineral Consultant on January 26, 2011 at 3:18
From the soles of your shoes to the center of the Earth, Max.  However technically what we own is the right to develop the minerals that underlie our land within the guidelines of state conservation regulations, the Mineral Code and environment law..  I don't know anyone "out here" that thinks that government should own the minerals underlying private property.  I certainly doubt there are any of those "folks" on this website.  LOL!
Permalink Reply by john w. parrish on January 26, 2011 at 3:30
what i was infrence to was  an article in WSJ about Russian people owned their minerals years ago.......The goverment through taxation took those minerals away from the people .  When the balance of power to have nots from haves in washington, our minerals are a big target...
Permalink Reply by Skip Peel - Mineral Consultant on January 26, 2011 at 4:32
john, I do not believe that Russian citizens ever owned mineral rights regardless of what the WSJ article claims.  In 1917 Russia transitioned from a monarchy where the crown owned the minerals to a Communist state where the state owned the minerals.  If you wish to have a politically based discussion concerning taxation, Keith provides a Political Forum page.
Permalink Reply by Keith Mauck (Site Publisher) on January 27, 2011 at 5:35

do you have the link to the WSJ story?

Permalink Reply by john w. parrish on January 27, 2011 at 5:40
it was in there couple years ago. iwill try to find it or archive it... jwp
Permalink Reply by Linda Whatley on January 26, 2011 at 3:38
Yes Skip, you are right!  We are very foutunate to live in a country that allows us to keep our mineral rights.........   so we all should be glad to have to share our good fortune with "Uncle Sam"....  Let's just hope the government never decides to take it all!!!!!!!  

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