Recently I received a letter that the state was changing my tax appraisal and that I had x number of days to dispute their lette of intent. What documentation would be needed to dispute their claim?
I am going to chime in here but I don't feel like I am an expert even though I own minerals in well over 100 counties.
My understanding is that the ad valorem taxes on oil & gas properties are based on reserves in the ground as evidenced by reserves studies by petroleum engineers and therefore are virtually impossible for mineral/royalty owners to dispute since they don't have the expertise that the operators have.
That said, I have always just assumed that the operators of the leases I own under will appeal and if successful then it will trickle down to the royalty owners as well?? I would love to hear from others if my thinking is flawed and if there is a way to fix it.
I always check comps on my real estate and appeal if I feel the taxable value is too high. It is fairly simple to do and my success rate has been very good on getting values down. I don't feel I can do so on my mineral holdings.
Dirk
That is my understanding as well. I have seen the operators protest successfully and lower the value of their interest (the largest part of the well interest), but I have not verified the corresponding savings to individual royalty owners. I will start watching for that.
Dirk Dieterich said:
That said, I have always just assumed that the operators of the leases I own under will appeal and if successful then it will trickle down to the royalty owners as well?? I would love to hear from others if my thinking is flawed and if there is a way to fix it.
Dirk