Will we be receiving a tax bill from Tyler County for NPRI? My understanding is that as NPRI we don’t have a deed or lease so wondering if there will be a tax bill generated from Tyler County.
Good question. Probably will receive a Production Tax ticket based on the Gross Royalty received. Should not receive a property tax ticket.
What is a production tax ticket? Should we expect that even if we are NPRI? And to whom is the production tax paid?
Untitled.pdf (1.3 MB)
Based on gross royalty. Is calculated for each leaseholder receiving royalty payment.
Good post. This goes on Schedule E right?
Yes. In my opinion, NPRI should not receive a production tax. The production tax is more of an updated assessment of the mineral value which is owned by the Leaseholder with executive right to sign a lease. NPRI is income stream. Not real property.
all production received in WV is taxed at the county level, regardless of the type of interest. The operator will turn into the county the amounts paid to each royalty owner, after production starts.
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