What if anything can/do mineral owners do when the local taxing body embarks on a over-valuation campaign; over-appraising/valuing minerals at 150% to 300% of actual annual royalty revenue?
“Protesting” is a waste of time because the county does their valuations in January, before there’s any “evidence” to support a counter-argument, and thus they dismiss any and all protests. Seems to me they’ve rigged the system in order to bilk mineral owners out of their royalty revenue. And this is legal???
I saw only this thread, “Texas Property Tax on Producing Wells & Minerals” in case that’s the one you’re referring to. My impression from it is that there’s essentially nothing a mineral owner can do except pay, or sell the minerals. FWIW, I’ll contact the operator to ask if they actually own any of the minerals in the pool, and if they have already, or will protest.
I’ve only protested surface properties and every time has been a waste of time.
Anyway, at the current rate, it will take at least 4 and maybe as much as 6 months of revenue to pay 2020 taxes, if the wells aren’t shut in, in which case it will be higher. 2019 was about 5% of revenue. 2018 was about 2% of revenue. With the economy in shambles and municipalities essentially bankrupt, I guess we’ll be seeing a “theft by taxation” crime wave soon.
Selling now is quite humorous; I’ve explored it; current offers are about 50% of annual revenue.