I recently learned I am an heir of producing wells and have royalty income. I did an internet search and found these properties owing a lot of property tax monies. Will I be responsible for that even though I had no idea about them? Please advise... Thanks A L Freeman
what state?
texas - i did see where the deceased is still on tax rolls with monies owed so do I clear this up or wait until oil company puts in my name
tim dowd said:
what state?
You need to speak with the county tax assessor/collector to determine if they will allow you to pay the delinquent taxes. In Kansas the operators frequently pay individuals delinquent property taxes out of the individuals royalties. But the law (property tax code) in Texas is different. You will need to contact the appraisal district in that county to change the ownership of the minerals to your name. Sometimes the operator provides that information, but I wouldn't rely on them to make the change. You are responsible, ultimately. Getting the ownership changed at the appraisal district will ensure you get the future value notices / tax bills as well. If taxes have been delinquent for a few years now, I would want to get in touch with the tax assessor immediately. Here in Tarrant County, they sell those delinquent mineral interests at the tax sale monthly.
thank you
Kitchen said:
You need to speak with the county tax assessor/collector to determine if they will allow you to pay the delinquent taxes. In Kansas the operators frequently pay individuals delinquent property taxes out of the individuals royalties. But the law (property tax code) in Texas is different. You will need to contact the appraisal district in that county to change the ownership of the minerals to your name. Sometimes the operator provides that information, but I wouldn't rely on them to make the change. You are responsible, ultimately. Getting the ownership changed at the appraisal district will ensure you get the future value notices / tax bills as well. If taxes have been delinquent for a few years now, I would want to get in touch with the tax assessor immediately. Here in Tarrant County, they sell those delinquent mineral interests at the tax sale monthly.
In Texas, the taxing authorities do not care who pays the taxes as long as they are paid. Here you can pay your next door neighbors taxes if you desire.
Again, in Texas taxes are assessed against the property not the person, unless it is personal property, so if a previous owner did not pay the taxes the current owner is responsible.
Would you know if I would still be responsible for the penalty and interest if no one ever received a bill? Thanks
Yes, even though you never received a bill, you are responsible for the penalty and interest. Not receiving a bill does not eliminate those items. Unfortunetly that is how the system works.
Al Freeman said:
Would you know if I would still be responsible for the penalty and interest if no one ever received a bill? Thanks
Mr Freeman,
You did not mention who the surface owner is. My question to the Forum is; if the surface owner does not
pay the property taxes, will the county shut down the operator or hold the mineral owner liable for the taxes or both?
w r gordon
Surface taxes are completely separate from minerals in Texas. If the surface was delinquent I don’t think they could shut down wells or operations as the lease should survive a tax delinquency of the surface or mineral owner.
What about taxes on damages? Will you be taxed on the amount received for damages due to a well location?
I feel that should put a negative value on the surface. Due to the company now controls it!
Damages to the surface would be an argument for lowering the value of the surface property value (for tax purposes). If you are the surface owner you would need to protest the property value of the surface in question.
I was referring to paying income tax on damages on a drilling location aka Pad.
Also county taxes on a drilling location that a operator controls until it is P&A. Thanks!
Damages are not taxable
Steve Stickney said:
I was referring to paying income tax on damages on a drilling location aka Pad.
Also county taxes on a drilling location that a operator controls until it is P&A. Thanks!
I thought so. Because I didn't report them but due to any new tax law I wanted to ask.
The Operator recently abandoned the proposed location and never created a drill pad.
The lease expired December 2013. So If any one is interested, I own 100% of 200 ac. of mineral rights
available to lease 3 miles S.E. of Franklin in Robertson County.
FYI - Check the State of Texas property tax website. If the tax office does not have a good mailing address and cannot contact the tax payer, the penalty and interest can be waived. However once the taxpayer knows of the past due taxes, the tax payer must pay in 21 days or the wavier is void. Thanks for all your help