Could someone list the current taxas applicable on royalties from wells located in Montana and North Dakota. I know severence taxes apply but what about taxes to the individual States and what if any write offs can be applied to off set these taxes.
Charles, I hope you don’t mind if I tag along on this thread. I have the same questions and more. As I understand it production, severance, state income tax, federal income tax, and ones home state income tax if any and it is higher than N.D. state income tax. But what about school district taxes if your minerals are within a school districs tax base ? I understand that we will get a depletion deduction if the federal govt. doesn’t abolish it as I’ve heard they have considered. I will be carried interest in at least some wells. I will receive a cost free royalty of 16% the rest of my production will go to pay for my part of the well. I wonder If I may have a deduction for the cash value of my oil that is paying for my part of the well, or even if I may claim depletion on that part. I admit I have been so busy reclaiming my mineral rights that I have not had time to sit down with a tax professional and get this hammered out. For those who do not know I did not seek to be an unconsenting owner in some wells. I signed leases for some and was never paid and I have been the victim of a case of fraud on others. I only mention this because most of the answers I see when someone asks anything about non-consent, the usual answer is “You should have thought of that before you went that route.” Our choices were to accept much less than we were entitled to with the enrichment going directly to the company that tresspassed against my brother and I or to wrest control of our minerals away from them, which we are still in the process of doing. Now; If your minerals are within a school district, do you pay property tax? I would appreciate any answers you can provide.