I received a tax bill with my property tax bill for royalty tax. It had no dates on what this covers,called the county,and they said they were only collectting this for the state.Called the state and did not get a good explanation of what this tax is.I paid state income tax on the royalty i received and was told this was tax for the oil still in the ground ,I told them it has always been there and I did not pay tax on it.Untill I get some answers I do not intend to pay this tax.How many times can the state tax the same dollar.I think we should ban together and get some answers from the state as to rather they would prefer we pay this tax or income tax on royalty income . what are ever ones thoughts on this tax 

Views: 2495

Reply to This

Replies to This Discussion

Best answer I have ever heard.

What state, county are you in?


I assume you are receiving royalties.

It appears the people you spoke with were uninformed.

Counties are authorized to collect a tax (property) on royalties, not "oil still in the ground".

mark   that answer came from Stan Dixon Ohio deputy tax commissioner,and war repeated in email I received today  Ed 

Stan would be confused or mistaken. There is no way to put a tax on something that does not have a verifiable value. No one can know how much exactly oil production is still left in the well that produces your royalty. It is easy however, to tax the royalty you received last year. That is a verifiable quantity and a tax can be easily applied to it. If I were you, I'd use this event as an educational opportunity for your uninformed public official. Since you are in email contact with him, you should begin asking him questions on exactly how this tax is calculated. As a citizen and taxpayer, you have every right to know this, and with his position, he has the responsibility to provide you with the proper explanation. Do NOT accept ignorance/mediocrity from public officials like this. Their job is to SERVE the public and they need to be held responsible to do that job properly.

As a life long resident of Eastern Ohio and the U.S., I can't say that it surprises me that the  local, county, federal and state governments are going to tax production and royalty payment's to the maximum amount that they can. They are going to ride this horse right off into the sunset, just like they have the steel mills and a lot of other manufacturing companies that used to call the United States home. This country doesn't belong to the people anymore it belongs to the politicians that we elect, that's right we elect, and once the get elected to office, it's to crap with their home districts and the people living in them. It's all about protecting their own cushy jobs. I look at little towns like Mingo Junction, Ohio the feds, state, county and local governments taxed the living crap out of the mills there. The mills can't compete with foreign steel and they close their doors and go away, and then the cities and county's set around and whine about how they have to lay off their police and fire fighters because they don't have the money to pay them. And please don't think I am saying that these jobs aren't important, as a matter of fact I used to be a paramedic many years ago, and I think these jobs are some of the most important in our society. My only point is these agencies tax the living crap out of any companies that come to this country to do business and then tax the living crap out of any production, wages and royalties that are made. The Belmont County Commissioners just gave the drug task force in Belmont County $50,000.00 dollars. I just seen it on the news the other night here. First of all the Belmont County Commissioners didn't give them crap, the people of Belmont County gave it to them. Did the commissioners of Belmont county for go their pay checks and give them their salaries? I think we all know the answers to that. What happened to confiscating the homes, the cars and any other assets that drug dealers and drug manufactures possesses at the time they are arrested for illegal drug activity and selling them to pay to fight drugs. And please again don't think that I don't  believe fighting drugs isn't a priority, because I think it's a top priority. I guess I have just taken the long way around the block to say, when is enough,  enough. When are these politicians going to figure out this isn't their money they are wasting, it's ours!  I read everyday about other oil and gas plays popping up all over the world, lets keep it up and when it becomes unprofitable for these companies to do business here they will take all their investment money and go somewhere else. When this part of Ohio goes dark again economically, they will all shake their heads and start whining about not being able to pay the bills that they created by not being fiscally responsible with our money and taxation. Not to long ago eastern Ohio was becoming a waste land. Come on all you wonderful elected politicians lets see if you can tax the crap out everything and see if you can get it there Again!

I'm sorry I have been out of town .I am in carroll co. oh.I am going to work on this next week


Kevin you are so right, this is exactly the same or western pa.



Are you currently receiving royalties from an existing well?

Yes in carroll co Ohio

I contacted the farm bureau and they are going to set up a meeting in Carroll Co. to address this issue.I hope everyone in the county shows up because it will affect most of us in the future  Ed


© 2022   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service