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Permalink Reply by Nancy Mosley on April 18, 2018 at 6:19am

What state?

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Permalink Reply by Darlene Nelson on April 18, 2018 at 6:53am

Ohio

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Permalink Reply by Dott on April 21, 2018 at 12:47pm

Taxes for the oil and gas begin when production begins, and the new law has the O&G company doing the collecting and giving it to the state of Ohio.  As for taxes on your land I am not sure but I would think not because you are paying for the O&G already as mentioned. I believed this collecting by Ohio  used to be done in conjunction with a property type tax but it is separate now. If you want more details call your county auditors office whether you own the land or not. If you don't own the land you still have to have a DEED for the Oil & Gas Rights (including a parcel number). So they can look up anything they need to. That is where I got my info.

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Permalink Reply by Lori Huber on April 25, 2018 at 7:58am

I was told by an appraiser that O&G rights have no effect on property value, most probably because they are depreciable but also because it is a commodity owned and leased, which you pay taxes on when you sell it. It would be the same as charging a higher property tax on a house you rent because you get income from it. The property itself is still valued the same. Also recently had county wide reassessment and a lot of properties were under contract and receiving royalties but it did not affect property values.

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Permalink Reply by Darlene Nelson on April 25, 2018 at 8:11am

Thank You

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Permalink Reply by Dott on April 26, 2018 at 11:41am

I copied this from the Ohio Taxation Website

A few years back Tuscarawas Auditor told me that the Oil and Gas company will be collecting the tax and giving it to the county. So I don't know if it is different from county to county on how they are handling this or if the procedure has changed and the Auditor will be collecting but still based on the production data.  I will have to call them i guess.

Ohio Oil and Gas Real Property Taxation

Ohio taxes oil and gas reserves as real property. All property taxes are charged and collected at the county level and support schools, townships, municipalities, counties, libraries, and special service districts. Once production of the oil or gas reserve begins, its taxable value is determined by the application of an appraisal formula set forth in RC 5713.051, which results in multipliers used to establish value based on a well’s production.

The Ohio Department of Natural Resources, Division of Oil and Gas Resources Management (“ODNR”), and the Ohio Department of Taxation have partnered to develop a system that relieves oil and gas producers of the burden of filing tax returns in every county in which they operate. The new system uses production data already filed with ODNR for regulatory purposes to calculate taxable values for each operating well. Those values are provided to county auditors electronically to prepare tax bills.

The final values for tax year 2017, to be collected in calendar year 2018, are provided below. Any challenges to these values may be made by filing a complaint with the board of revision of the county in which the well is located.Complaints for tax year 2017 may be filed until April 2, 2018, or the last day first-half taxes may be paid without a penalty, whichever date is later. Questions about taxes should be directed to the auditor of the county where the well is located.A link to the directory of county auditors is provided below.

Valuation

• Memorandum on the Taxation of Oil and Gas for Tax Year 2017
• 2017 Values

Resources

• Oil and Gas tax questions? Link to County Auditor Association of Ohio CAAO Directory
• ODNR Division of Oil and Gas Resources Management website
• 2018 Value Multipliers-Final
• 2017 Value Multipliers-Final
• 2016 Value Multipliers-Final

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