I inherited some mineral interests in Texas from my mother. She started receiving tax bills from the county. She says that here family has tried over and over to explain that they never were taxed until recently and that there was no property that they owned. The mineral rights have been passed down through generations with many, many other family member on that one well.
My mother had no estate of any value, so did not leave a will. She said they only had 1/16th of an undivided interest and her brother and her never paid taxes because my grandmother said there was nothing to tax. Her brother passed away and his widow paid the taxes last year to stop getting the letters from a law firm. We were under the assumption that this covered taxes for both interests. Now we have received a notice going back 10 years for taxes.
What we need to know is, will the county seize the royalties from the lease? My mother continued to get royalties for 10 years. These checks were from $50 to $100 dollars a month. Now my sister and I will start receiving this amount divided by 2. This now seems to be that we inherited something that we have to pay instead of receive.
Is it possible for us to sell these mineral rights? I think that we will end up with nothing if they take the past taxes first. Will the county seize the mineral rights? My mother thought "no".
I'm not so sure.
Any advice you can give will greatly be appreciated.
Thanks,
Sherry
You can lose your mineral deed in tax foreclosure after a redemption time (I think it is 3-4 years unpaid taxes).
Sure, you can sell your mineral property. You should find buyer/investors on this site.....good luck
Thank you for your reply. I found among my moms' papers where my grandmother in 1985 received a qualified royalty owners exemption. Is this why my grandmother was not paying taxes on her royalties? If they seize the mineral property do they get the royalties? I cannot figure why it has been 10 years and they are starting to send letters from a law firm. My mother was disabled at age 55 and living only off social security and a small pension from her employer for the last 20 years. Would she not have qualified for some sort of lower tax.
The letters from a law firm says they put a tax lien against the royalties or property in 2009. It only brings in a small amount and now will be split even further. I know she had received offers of 6,600 for her interest, but would not sell. I think that they over tax the value. The appraisal for taxes says it's valued on 7,800, but she only received 1,200 a year. This seems rediculous to me. My sister and I don't know what we should do. Any advice?
talk to the county tax department and tell them this story. I believe you can resolve this without a lawyer, but you may need to see a lawyer if they can’t help you. It sounds like some official has goofed-up the file…good luck
Sherry, the taxing authority, such as the school district, charges you property tax on oil and gas royalties. There are companies that determine the value of those royalties in the ground for the taxing authority and this is what you pay tax on, not on the amount you actually get paid.
It seems like a rather unfair tax to me. Protesting the tax at a hearing before the proper taxing authority usually doesn't result in a tax reduction. At least it didn't in my case. I do not know what the taxing authority does when people are delinquent in paying taxes on their royalty interests. This is a good legal question.
Personally, I would never sell any of my mineral rights. You never know what they be worth someday. What size is the tract or tracts under which you own your 1/16 undivided mineral interest?
It is part of 159 acres. There are many heirs, I’m not sure how much belonged to my great grandmother.
6th Generation Texan said:
Sherry, the taxing authority, such as the school district, charges you property tax on oil and gas royalties. There are companies that determine the value of those royalties in the ground for the taxing authority and this is what you pay tax on, not on the amount you actually get paid.
It seems like a rather unfair tax to me. Protesting the tax at a hearing before the proper taxing authority usually doesn't result in a tax reduction. At least it didn't in my case. I do not know what the taxing authority does when people are delinquent in paying taxes on their royalty interests. This is a good legal question.
Personally, I would never sell any of my mineral rights. You never know what they be worth someday. What size is the tract or tracts under which you own your 1/16 undivided mineral interest?