I own interests within 3 separate sections located in Logan County Colorado. To my knowledge, there aren’t any producing wells located within these sections (Checked the GIS online tool to make sure). I received a Severed Minerals Property Tax Notice yesterday for 2022 taxes due in 2023. I am not super familiar with how Colorado treats mineral taxes so forgive me if I ask a dumb question here. I was under the impression you would only pay taxes associated with production within a given county. I called the county assessors office and was told that they only send out tax bills for properties that aren’t producing. This sounds backwards to me (based on my experience with ad valorem taxes in Texas). Does anyone know if this is right? If this is in fact true I find it odd that I was only billed taxes for one of the sections I have an interest in. Any insight into how Logan County (or Colorado in general) handles these kinds of taxes would be greatly appreciated.
Hi @ADS-OG, I don’t know the rule yet, but I do know we have been paying a small amount of property taxes on a non-producing/never producing parcel of mineral rights in Prowers County, Colorado. Maybe it depends on the county.
Call the tax office and get them to explain it to you. And make sure they know you have three sections (they might all be on the same bill).
Here is an explanation from this same forum in 2013 thanks to @David_Ruppert:
All counties in Colorado levy taxes on real estate, including severed minerals. If the taxes are not paid, the county puts them up at a tax lien sale that is held every year between Oct. and Dec. They do not sell the minerals at that auction, what they do is they give investors/speculators an opportunity to pay the back taxes on the real estate by buying liens on the property. The taxes accrue interest at a statutory rate. If the owner of the property does not pay the back taxes plus the accrued interest and fees for 3 years the person that holds the lien can apply for a treasurer’s deed which conveys title to the minerals
Thanks for the information everyone. I really appreciate the quick responses. I will reach out to the county again for some additional information.
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