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Permalink Reply by PETE on March 4, 2013 at 8:13pm

NON-PRODUCING PROPERTY IN WV IS ASSESSED AT 25 AN ACRE BY STATE LAW
WHICH MAY CHANGE--LEASES ARE ASSESSED AT 1200 AND PRODUCING IS VALUED AT 3 TO 5 TIMES THE ROYALTY AMOUNT WHICH IS A HUGE TAX BILL

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Permalink Reply by Denver Gallentine on March 4, 2013 at 8:27pm

Pete, my wife and I just finished a bottle of wine and I am sitting by the fire so my mind is not working well so forgive my dumb questions. I assume the $25 per acre is the taxable value of mineral rights. My question is the $1200 on leases and producing is 3-4 times the royalty amt. We have 4 leases and are working on a 5th in WV and taxes maybe $3.00 per acre. If they do drill am I going to be paying a ridiculous amt. of taxes? Thanks for the information.

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Permalink Reply by Nancy Mosley on March 4, 2013 at 9:17pm

The assessed value is multiplied by the tax rate to get the tax owed. In the West Virginia county where my oil and gas interests are taxed, for a property assessed at the minimum of $200, the tax, for the year, is $2.18 if paid by a certain date. 

The county assessor's office should be able to explain. 

A tax bill of $200 would be for a much larger assessed value, which of course can happen with a property that produces several thousands of dollars of royalty revenue a year. 

At least, in the county I am familiar with (Ritchie)

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Permalink Reply by Denver Gallentine on March 4, 2013 at 10:33pm

Thanks Nancy. Yours & Pete's explanations cleared it up. This is a good site.

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Permalink Reply by PETE on March 4, 2013 at 9:20pm

DENVER--THEY BASE THE TAX ON THE AMOUNT OF ROYALTY YOU RECEIVE AND IT RUNS 2 YEARS BEHIND(IE 2013 TAX IS BASED ON 2011 PRODUCTION) fOR EXAMPLE A 125000 ROYALTY WILL GET YOU A 500000 VALUATION OR A TAX OF AROUND 8000--THIS IS OF COURSE ON TOP OF THE FEDERAL AND STATE TAX--THE LEASES TAX IS ABOUT 3 BUCKS (MARSHALL)

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Permalink Reply by Denver Gallentine on March 4, 2013 at 10:31pm

Thanks Pete. That makes sense. We also have the land in Ohio that we own the land and mineral rights. Columbus ( Gov. and Leg.) are planning to add an additional 4% tax on all leased land or on the profits incurred when oil/gas is removed. They are still arguing about it.

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Permalink Reply by 0ym9x5ag7ury2 on March 4, 2013 at 9:38pm

Skid,

 If you are using the land you have in WV for farming, it looks like the information below says "as long as the natural resource income doesn't exceed the farm income, the natural resources are not taxed".

I found this information recently on the website below.

 

http://www.wva.state.wv.us/wvtax/propertyTax/frequentlyAskedQuestions.aspx#farming

Q&A: If I use my property for farming or to conserve natural resources, are there any tax breaks for me?

                Yes and No. Land used as farms does receive a preferential treatment.  However, the landowner must apply to the county assessor to receive the farm discount.  Farms receive a further tax incentive in that, as long as their natural resource income doesn't exceed the farm income, the natural resources are not taxed.  There is no property tax incentive for the conservation of natural resouces

Ron

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Permalink Reply by Jeffrey L kerr on March 4, 2013 at 10:57pm

we pay a coal tax on our coal even tho we still own it think the reason is my grama family owns half of it and they sold it yrs ago. don't think its right but what can we do PA. law is f-up

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