We are a large family with mineral rights holdings only in Pecos and primarily Reeves County. We are trying to find a good agency to help us contest the valuation of the minerals as the taxes seem to be way over we are getting annually in royalty checks. I have only found one: Permian Mineral Tax Consultants. Does anyone have experience with them and how was it. Also, any other recommendations? Thanks, in advance. Jana
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You must protest valuation within 30 days of Notice of Appraised Value which is generally sent in the spring. You cannot protest when the Tax Statement is sent at the end of the year. The appraisal value of the well will always be more than your annual revenues as it is a value base on the revenue stream over the anticipated life of the well and discounted to a present value. In other words, it is the market value of your minerals which is what you would receive if you sold, similar to market value of your house. The taxes can be 3-5% of this value.
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If the TAXES are above what you are getting in revenue, then there is an issue. If the VALUATION is over what you are getting in revenue, that’s to be expected.
In my experience the operator (who is the one most affected by a “bad” appraisal) will usually be the one who addresses any completely out of whack appraisals, as they have the resources and the motivation. And then everyone else gets dragged along. But ymmv.
Have no experience with Permian M Tax consultants.
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In Some East Texas Counties in the past the tax for the year was more than the revenue received by the mineral and royalty owners. I some cases it had to be corrected several times before it was even close to being right and or reasonable! It’s called greed! Houses and property have been highly overvalued also, which everyone knows. Texas voters got some good changes done to the property tax laws this past November. But we suspect that the districts will still try to keep unfairly increasingg the tax rate and values. Happy Thanksgiving.
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Thanks, you are always so helpful!!
Thank you, I hope you had a great Thanksgiving too!
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