We are land owners in Howard County. Recently inherited the minerals late last year. Received a 2018 property statement for a horizontal well that runs under our property. They have assessed the 2018 proposed value of $9,000. I did not realize you are taxed on wells that run under your property, but again, we are newbies regarding the minerals. Has anyone tried to dispute the value of a well such as this and been successful? Does anyone know how the Assessor comes up with the value they place on the well?
If you are a mineral owner receiving royalties for this well, then you will be assessed property taxes. Minerals are a real property asset and taxed when producing. In Texas, the wells are valued by an appraisal company and it seems that Pritchard and Abbott Appraisers do this for Howard County. The well is valued as a whole and then the value is allocated among the working interests and royalty interests according to their DOI in the well. The DOI for all owners will total to 100%. I do not know what success minerals owners have had in protesting well valuations in Howard County.
Thank you!