Part of the proposed tax bill apparently includes eliminating the 15% percentage depletion allowance that royalty owners get to deduct on their tax returns. So in other words, real estate developers will get to depreciate their deteriorating improvements, but you will not get no deduction for your mineral assets being depleted. Apparently mineral owners are being lumped in with “big oil subsidies”, with no one pushing this bill courageous enough to point out the difference. The funny thing (if you cannot cry then laugh?) is that percentage depletion was eliminated for big producers in the 1970s and is only currently available to small operators and royalty owners.
Below is NARO’s response on testimony they are submitting to the Senate Finance Committee.