Reeves County implemented a new tax this year on mineral rights. It was described to me as a tax on the income potential of the property. I don’t know if it is specific to mineral rights (it should not be in my mind), but it is not an insignificant amount. They have some formula for figuring out what the projected income of a piece of property will be and then tax it. However, it appears to be based primarily on previous revenue generated by the property - so in my mind it is a county income tax.
This year the projected tax will actually be nearly as much as the royalties received off the property (that is after filing a protest and getting about a 24% reduction or told we will receive that amount of a reduction as we have yet to see the tax bill).
For those familiar with this new tax, is my interpretation of it accurate?