Property Tax on Mineral Interest

[wickll]

I don't want to complain , since I have been blessed to be receiving some "nice" checks for mineral interests in a well. But my wife and I were shocked when we received our statement of appraised value on some mineral interests we own.

From what I understand, they simply look at the production from the last "X" number of months, estimate the future production , plug this into a formula, and come up with a "value " on the well.

My question are : Is there any chance of protesting? Or at least having a reasonable chance of lowering the evaluation? Has any TBHers know of anyone "winning" a protest ? Suggestions?

Thanks in advance.

[deerwatcher51]

In my experience, the valuations are usually trailing. That is as you said, they use a multiplier of the prior year production as an indicator of value. Most appraisal districts use a specialized company to value the mineral interest. You have the right to know how they came up with the value so you can request their calculations. Having said all of that, I don't think you have much of a chance to get it lowered. The value should drop as production drops.

[TexasTK]

I have protested before to no avail. Most counties use a 3rd party to handle this for them and I met w one of there representatives when protesting. As said above the amount will decrease as the production falls off and life expectancy of well decreases.

[wickll]

Thanks deerwatcher and TexasTK. That is pretty much what I suspected. But I figured some TBHers have had some experience.

[softpoint]

I've protested it and won a little reprieve before. Protest it. The good part is that when you win, they have to give everyone with interest in that unit an adjustment.

[Big pig]

I would contact the operator and ask if they have protested.
Thats what my royalty owners do.

BP

[Tbar]

i would contact the operator and ask if they have protested.
Thats what my royalty owners do.

Bp

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