County taxes

Oil and Gas Leasing Help
1

I am currently getting royalty checks from production in Robertson county Texas. There are

two taxes being deducted from each check. One is a severance tax and the other is a

regulatory tax. Texas does not have an income tax as we have here in Pennsylvania. So the

question is; "does Robertson county assess any taxes on my royalty payments"? Also

would there be any other surprise taxes or assessments that I should be aware of in

Robertson county? For those of you who can help....Thank you. William Gordon

2

we got a notice from the dewitt county appraisal district for tax that will be due to the county on production of oil , for our royalty check, that was a surprise we only get royalty checks, we don't have the mineral rights only royalties

3

There is a state severance tax and each county has property taxes. The county property taxes are usually not deducted from checks. You get a year end tax bill. Check to see if the county has an account set up for you.

http://www.taxnetusa.com/texas/robertson/

4

I am not aware of any county that fails to assess and collect taxes on mineral interests. In fact, there is even a statewide formula on how they assess mineral interests and it is based on prior years production. Not sure what you mean by behind the times.

5

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=8&cad=rja&ved=0CF0QFjAH&url=http%3A%2F%2Fnknt.org%2FExhibits%2FMineralInterest.pdf&ei=7inXUaCHL4O68wTdhIDYDQ&usg=AFQjCNGy9tbcrB_vtIMf_f5gJlRNDzwK-g

Pete-

Found this explanation of how they value mineral interests in Texas appraisal districts. It is not based on prior year's production per se, but rather is a fair market value approach. However, the prior year's prices and production levels are factors in setting FMV.