This is the second year in a row that I have been notified by the state tax department that my property taxes on minerals in Doddridge Co. would be going up. I was told last year that it wouldn't be significant but it was. I don't understand since production and prices are down. Can anyone explain? Also why is the state involved in county mineral rights property taxes?
Production (volume and amount) per well is reported to the State tax department by tye companies. I am sure they pay their taxes based on this, but also they report how much they paid each royalty owner, per well. This is then reported to the county where the well is located. The county assessor has the wells somehow hooked up to the property which is taxed, whether just some type of OGM interest (or just oil or just gas etc) or fee (surface and minerals). This is always 2 years behind. In 2013 you will pay county taaxes based on reportrf income, which was reported in 2012, but was from production in 2011. Natural gas prices have been going down for awhile before they went up some. Also when a new well is drilled, initial production is usually higher than later months and years. Each royalty owner has the right to request the amount reported paid by the company to the state tax department, but only his/her own interest (unless some special situation like power of attorney). Does that make sense? Complicated situation which I had to find out. If you need more specific information I can dig up phone numbers but am not at my computer right now. The county assessor has a formula to tetermine how to assess the mineral interests based on the reported. This assessed value is what can change, due to more or less revenue reported for the well(s) involved on each property. There is a minimum amount set by the county for no or little production. Your county assessor’s office should be able to help. I am basing this on the county I know about (Ritchie) but I expect Doddridge has a similar system, all coming from information from the state.
Thank you for the information. I now know how to proceed to check on the state and county level. It is very complicated, but worth proceeding because the income is down considerable from two years ago.
Nancy Mosley said:
Production (volume and $ amount) per well is reported to the State tax department by tye companies. I am sure they pay their taxes based on this, but also they report how much they paid each royalty owner, per well. This is then reported to the county where the well is located. The county assessor has the wells somehow hooked up to the property which is taxed, whether just some type of OGM interest (or just oil or just gas etc) or fee (surface and minerals). This is always 2 years behind. In 2013 you will pay county taaxes based on reportrf income, which was reported in 2012, but was from production in 2011. Natural gas prices have been going down for awhile before they went up some. Also when a new well is drilled, initial production is usually higher than later months and years.
Each royalty owner has the right to request the amount reported paid by the company to the state tax department, but only his/her own interest (unless some special situation like power of attorney).
Does that make sense? Complicated situation which I had to find out. If you need more specific information I can dig up phone numbers but am not at my computer right now.
The county assessor has a formula to tetermine how to assess the mineral interests based on the $ reported. This assessed value is what can change, due to more or less revenue reported for the well(s) involved on each property. There is a minimum amount set by the county for no or little production.
Your county assessor's office should be able to help. I am basing this on the county I know about (Ritchie) but I expect Doddridge has a similar system, all coming from information from the state.