Great discussion topic when you consider:
1) The property owner (one that pays the taxes) may not be the mineral owner that got all the money.
2) The great disparity from some that got $100 acre vs. $20,000+; how would they access the taxes.
Why would the "real" property value increase just because there are valuable minerals underneath?
I have wondered the same thing KB. The insurance companies rates your premium on how much risk is the isured property, just like life insurance is on ones life. I am afraid to ask my agent, because I do not want to give him any ideas. I guess one just has to sit and wait, and see how the cards fall on that one.
The gov't never misses a chance to go up on our property taxes. I just got a HUGE increase in the mail from the Bossier Tax assessor. Must need money to pay for that Cyber Innovation Center that they are building. They do not understand the concept of a Budget and stopping wasteful spending.
Land is either taxed at a percentage of market value (what like properties would retail for) or Use value (a percent of value of timber, agriculture, etc.). The land owner chooses which method gets used. There are 3 classes of timber, depending upon their growth and use. Millage rates are applied to a percentage of that value if that's what the owner has chosen as the method. I've never heard anything about minerals being taxed other than when they get sold.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More